The ASX 200 is retracing to test support at 4400/4450. Respect would confirm a primary advance to 4900*. But correction in US markets is likely and would cause a breach of the ASX 200 rising trendline. Respect of 4250, however, would still indicate a healthy up-trend — as would a 13-week Twiggs Money Flow trough above zero.
* Target calculation: 4450 + ( 4450 – 4000 ) = 4900
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.