Strange week on the ASX

Strange week on the ASX, with strong jobs numbers from the ABS causing a surge in the Aussie Dollar and a more optimistic outlook on the ASX.

But Iron ore continues to fall, headed for a test of 50.

Iron Ore

The ASX 300 Metals & Mining index respected resistance at 3000 and is headed for a test of primary support at 2750. Breach would confirm the primary down-trend.

ASX 300 Metals & Mining

The ASX 300 Banks index respected resistance at 8500 and is likely to test primary support at 8000. Again, breach would confirm the primary down-trend.

ASX 300 Banks

The ASX 200 has formed a broadening wedge consolidation, in a down-trend. Declining Twiggs Money Flow indicates some selling pressure. Expect a test of primary support at 5600. Again, breach would warn of a primary down-trend. But a failed swing (that respects 5700) would warn that all bets are off and the index may be preparing for a rally.

ASX 200

5 Replies to “Strange week on the ASX”

  1. The “sell in May and go away” mantra has not been strong this year, possibly due to a rush of money into superannuation due to the coming deadline for regulatory changes. Does this also possibly highlight a problem with relying on charting (which cannot foretell fundamental factors, like the sudden cessation of these flows into shares after 30 June, when we normally might expect a resumption of growth in the index)?

  2. Well we did correct 300 points i call that a May correction
    Have heard the media talk of this rush to super but cash is another super option so don’t believe people are rushing to buy shares in a declining market before 30 June

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