The ASX 200 broke out of its narrow flag, indicating an advance to 5250. Rising 21-day Twiggs Money Flow supports the signal. Reversal below 5000 is unlikely, but would test medium-term support at 4850. The ASX 200 Volatility Index ($XVI) remains below 15 — a bullish sign.
* Target calculation: 5250 + ( 5250 – 4650 ) = 5850
The 2 tech guys I follow believe US markets are likely in correction mode anywhere between 5 to 12%, which means the XAO will experience a similar retrace so 5000 is unlikely to hold thru next Aug/Sep. Also, there appears to be plenty of negative divergences on various indicators for this weeks XAO high relative to the Feb high & when the XAO dropped around 1.5% during 2013 it meant lower prices in the near future.