The ASX 200 is testing resistance at 6100/6150 despite a weakening Australian Dollar and a troubled banking sector. Breakout above 6150 would signal a welcome fresh advance.
Source: S&P Dow Jones Indices
But I remain skeptical because the largest sector, Financials — whose market cap is a third of the entire index — is in trouble. The ASX 300 Banks Index is in a primary down-trend, having broken support at 8000. Retracement that respects the new resistance level at 8000/8100 would confirm a primary down-trend, with a medium-term target of the 2016 low at 7200.
Miners, on the other hand, have recovered. Breakout above 3800 would signal a fresh advance, with medium-term a target of 4200.
