ASX 200: Correction to test 6000

The ASX 300 Banks index continues to test support at 7700. Declining Trend Index warns of medium-term selling pressure. Breach of support is likely and would signal a test of primary support at 7300.

ASX 300 Banks Index

The ASX 300 Metals & Mining index is also headed for a test of primary support, at 3400. A Trend Index peak at/below zero would warn of rising selling pressure and a primary down-trend.

ASX 300 Metals & Mining

Commodities are already in a primary down-trend but Australian stocks are partially cushioned by a weakening Aussie Dollar.

DJ-UBS Commodity Index

The ASX 200 found medium-term support at 6150 but this unlikely to hold. Bearish Divergence on the Trend Index warns of medium-term selling pressure. Expect a correction to test the rising long-term trendline at 6000.

ASX 200

I remain cautious on Australian stocks, holding over 30% cash in the Australian Growth portfolio.