Banks continue to threaten mayhem, with the ASX 300 Banks Index headed for a target of its 2016 low at 7200.
The second biggest industry group, Metals & Mining Index, however, remains in a primary up-trend. A long tail on the ASX 300 Metals & Mining weekly chart reflects support at 3800 and another test of 4000 is likely.
The ASX 200 continues to display a large bearish divergence on Twiggs Money Flow (13-week), warning of selling pressure. Breach of 5950 would warn of a test of primary support at 5650/5750.
I expect a gradual decline in the index unless mining falters. In which case all bets are off.