Anthony over at http://adelaidespitraders.blogspot.com/ monitors the action in the stock sectors as well as two big cap stocks (BHP and CBA) while he trades the SPI. He uses them to help confirm his trading ideas. Following his lead, I have started watching BHP (minerals) and CBA (banking stock). This morning, after the move down, a double bottom formed on the SPI while BHP, CBA and the tick index formed bullish divergences. See chart below for result.
Exit points are another matter. Here I circled the tick spike as a possibility. In hindsight it turned out to be the correct call as the market moved lower for the rest of the day (not shown).
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