Australia’s ASX 200 index broke medium-term support at 4175/4180, warning of another test of primary support at 4000. Respect of the zero line (from below) by 63-Day Twiggs Momentum indicates continuation of the primary down-trend. The broad band of support between 3800 and 4000 is likely to hold, but failure would signal a decline to 3500*.
* Target calculation: 3900 – ( 4300 – 3900 ) = 3500
The recession must come. South eastern Australia has 4.1% wage growth and 2% sales growth. The resources states have 10% wages growth and 14% sales growth. China is cutting back on imports of our resources because it has Himalayan mountain-size piles of iron ore and coal. Employers are slashing headcount down to survival levels. Retails chains are becoming a rarity and factories have moved to China. The big end of town is cashed up and not buying, just waiting for the big down. They know what is coming. We dont.
Well said Idecimus, I agree, I just look around and i see we are already in a recession its only the government that doesnt realise.