The ASX 200 continues to rally, but today’s weak close indicates resistance. 21-Day Twiggs Money Flow holding above zero, however, indicates longer term buying pressure. Breakout above 5450/5460 would signal an advance to 5800*. Weakness from China or the US, however, could drive the ASX lower. Failure of support at 5290/5300 would signal a stronger correction and possible test of primary support at 5050.
* Target calculation: 5400 + ( 5400 – 5000 ) = 5800
ASX 200 VIX near 12, however, indicates low risk typical of a bull market.
