The ASX 200 indicates short-term buying pressure with a hammer candlestick followed by a harami formation. Rising 21-day Twiggs Money Flow also suggests medium-term buying pressure; completion of a large trough above zero would strengthen the signal. Breakout above 5450 is likely, after the strong showing in US markets, and would signal an advance to 5800*. Reversal below 5350 is unlikely, but would warn of another correction.
* Target calculation: 5400 + ( 5400 – 5000 ) = 5800
ASX 200 VIX below 15 continues to indicate low risk typical of a bull market.
