The ASX 200 index has been hesitant since the breach of its descending trendline. A bottom may be forming, but 13-week Twiggs Money Flow reversal below zero warns us not to expect much upside any time soon. Respect of the rising (green) trendline would indicate another test of 4400, while penetration would mean another test of primary support at 4000*.
A 2-hour chart shows the index headed for another test of resistance at 4310 on Monday. But momentum is falling and respect of 4310 would suggest a correction to 4000.
The weekly and monthly Stochastics have been overextended for the last couple of weeks and I’ve been quietly waiting for what I’m expecting to be a significant correction.
Your patience may pay well Rob. Volume across all markets has been below average for the last 3 months and with tow and a half years of buying now out of the money the exit door could get a bit crowded.