The ASX 200 found short-term support at 5630 and continuation of the US rally would see a breakout above resistance at 5650. Follow-through above 5680 would confirm the advance, offering a target of 5850*. Completion of another 21-day Twiggs Money Flow trough above zero would strengthen the signal. Reversal below 5550 is unlikely, but would warn of a test of primary support at 5360/5380.
* Target calculation: 5650 + ( 5650 – 5450 ) = 5850
Retreat of the ASX 200 VIX below 12 indicates low risk typical of a bull market.
