The ASX 200 respected its new support level at 5600. Twiggs Money Flow respected the zero line, suggesting buying pressure. Follow-through above 5750 would offer a target of 6000*.
* Target medium-term: 5800 + ( 5800 – 5600 ) = 6000
2 Replies to “ASX finds support”
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Colin,
This is the start – in Australia – of 3rd , and FINAL , upleg in the Bull Market that started in March 2009.
The USA, FT and DAX 3rd up-leg had started early in November.
We proceed from here to ultimate highs – globally ( and including property , also Aussie property ).
Then this euphoric phase ( can last 18-24 months) becomes exhausted causing the ‘revert-to-mean’ collapse – the former is accompanied by optimism which later becomes irrational exuberance, leading to the latter.
Buy industrials – especially the high risk underperformers – very aggressively.
Dow Theory being played out – classically – in terms of the three up-leg waves in USA:
1. March 2009 to June 2011 ;
2. December 2011 – Mid 2015 ;
3. Jan 2016 – (Jan 2018 ??) = current 3rd Wave
Easy ….. peesy …. ( an expert makes it look easy ??? )
Cheers, best wishes and thanks for your service provision and your wise comments.
Stage 3 prices advance on hopes and expectations rather than on substantive earnings growth. At present earnings are growing. When that stops….