The ASX 300 Metals & Mining index continues to test support at 3750. Breach of support and the rising trendline would warn of a correction to 3400.
The ASX 300 Banks index recovered above 8000, the false break suggesting another rally, targeting 8500.
I remain wary of banks, however, because of higher funding costs, falling credit growth and rising default risk .
The ASX 200 continues to test resistance at 6300. Rising Twiggs Money Flow troughs signal buying pressure. Breakout above 6300 would present a short-term target of 6500.