The ASX 200 correction continues to test medium-term support at 6150. Small candles on the weekly chart indicate a lack of enthusiasm from buyers and support is unlikely to hold. Breach would signal a test of the rising long-term trendline at 6000.
The ASX 300 Banks index continues to test support at 7700. Declining Trend Index warns of selling pressure. Breach of support is likely and would signal a test of primary support at 7300.
The ASX 300 Metals & Mining, however, received a boost from stronger commodity prices and is testing resistance at 3750. A Trend Index peak near zero is less likely but would warn of selling pressure and a primary down-trend.
I remain cautious on Australian stocks, holding over 30% cash in the Australian Growth portfolio.