ASX 200: The last straw

The ASX Small Ordinaries Index is already in a primary down-trend, but breach of the 2012 low at 2050 warns of a decline to 1700*.

ASX Small Ords Index

* Target calculation: 2050 – ( 2400 – 2050 ) = 1700

The ASX 200 was in a strong up-trend until its recent breach of support at 4900, following bearish divergence on 13-week Twiggs Money Flow. Penetration of the the rising trendline would be the last straw, confirming reversal to a primary down-trend.

ASX 200 Index

Follow-through below 4750 would test support at 4400/4500.