The ASX 300 Banks index found support at 7700 and retraced to test its new resistance level at 8000. Respect is likely and would confirm another test of primary support at 7300.
The ASX 300 Metals & Mining index made a weak retracement to test 3750, suggesting strong selling pressure. Breach of short-term support at 3600 is likely and would test primary support at 3400.
The ASX 200 rallied above the 6300 watershed but selling pressure is evident in the tall shadow. Bearish Divergence on the Trend Index warns of selling pressure. Breach of 6200 is likely and would warn of a correction, testing 6000.
I am wary of banks because of higher funding costs, falling credit growth and rising default risk and cautious on Australian stocks, holding over 30% cash in the Australian Growth portfolio.