A monthly chart of the ASX 200 also gives a clearer perspective of market direction. Breakout above 5450 signals an advance while follow-through above 5550 would confirm a target of 6000*. A 13-week Twiggs Money Flow trough above zero is promising, but needs to be strengthened by a breakout above the descending trendline. Reversal below the secondary rising trendline on the index chart is unlikely, but would warn of a test of the primary trendline.
* Target calculation: 5500 + ( 5500 – 5000 ) = 6000
ASX 200 VIX below 12 indicates low risk typical of a bull market.
