The ASX 200 is headed for a test of resistance at 4400. Rising 13-week Twiggs Money Flow indicates buying pressure. Breakout above 4400 would complete a higher trough, signaling the start of a primary up-trend, but selling pressure in US and Chinese markets may prevent this.
* Target calculation: 4400 + ( 4400 – 4000 ) = 4800
The rise from 4000 has taken place on light volume so it will be interesting to see what happens in February.
Feb has been a correction month in the past few years for ASX , let’s see if ASX would perform differently this year
The US Bear will over-ride and pull this down.
I love (narrowing) wedges.
Since I am short I can guarantee it will go back up to 4.900
I did plenty of research over the weekend and it seems many opinions are split about which way the S&P500 will go this month….one thing for sure Colins post about the fall in Baltic Dry Index is very concerning for the ASX!!