The ASX 200 found resistance at 5350. Respect of the zero line (from below) by 21-day Twiggs Money Flow warns of continued selling pressure. Failure of support at 5250 would warn of a test of primary support at 5000/5050. Recovery above 5350 is less likely, but would suggest another rally.
* Target calculation: 5350 – ( 5700 – 5350 ) = 5000
The ASX 200 VIX is rising, but remains at levels typical of a bull market.
Hi Colin,
My 2c worth suggests this market will make a low during mid to late Oct. Cyclically, our market does bottom during this qtr, then rally into Xmas and (sometimes) beyond. I am not sure of the exact cause, but it appears dividend chasing then selling the dividend peak (occurs in March April also but peaks can form into May then drift south during May June for the Aug Div rally.)
Coupled with this (equity) phenomena, commodities (including AUD) also tend to trough into the last qtr then rally into Xmas.
You may recall that I previously posted this market resembled 1980-82 (Oil, gold and eqities) so I think Oct Nov is the buy area (timeframe)
Needless to say I am long everything (with some losses now accumulating) except for a small S&P500 short – so I am not advocating my medicine, seeing as how I dont take it, but just in case your other readers may wish to explore/comment.
Kind regards
Murray
Murray, I agree that an October low is likely. The market remains bullish and this should present a buying opportunity.