The ASX 200 opened sharply lower following a steep fall on US markets overnight. Respect of resistance at the 5000 level confirms the correction signaled earlier. A 21-day Twiggs Money Flow peak below zero would warn of strong selling pressure.
The ASX 50 monthly chart shows that even correction back to 4500 would not disrupt the primary up-trend and may present a buying opportunity for investors. Breach of support at 5000 would confirm the correction, but a trough above zero on 13-week Twiggs Money flow (and above 4500 on the index) would signal the primary trend is intact.
Colin,
How do you explain the high below the open on a down candle such as today 18th of April on the daily XAO/XJO eg O 4993.600 H 4979.700 There are more of these on the charts.
Keep up this excellent blog
Bert
The Australian market is openly and knowingly manipulated by just a couple of players and the government turns a blind eye. The politician’s super fund is making a killing with all of the insider tips t gets.
High and Low are taken from individual trades. Open and Close are advised by the exchange. Seems odd but the official Open or Close can be outside the trading range. We correct this visually on the chart — imagine how a candle would look — but are reluctant to mess with the data as supplied unless we receive a correction.
Colin,
Thanks for the explanation.
Bert
Colin
I am not sure what you mean by the high below the open on the 18th. According to my records the day opened at the top, 5004.60, and closed at the low 4924.40