After a healthy start to the day, the ASX ran into poor Flash Manufacturing PMI out of China. The Aussie Dollar fell through 90 cents, suggesting another test of 87 (US cents).
The ASX 200 faces strong resistance at 5400 to 5450. Rising 21-day Money Flow indicates medium-term buying pressure and breakout above 5450 would confirm a primary advance. But reversal below 5400 would warn of another correction; follow-through below 5350 would confirm.
* Target calculation: 5350 + ( 5350 – 5050 ) = 5650