The ASX 300 Banks Index is testing primary support at 7000. Declining peaks on the Trend Index warn of selling pressure.
Breach of 7000 would signal another primary decline with a long-term target of 5000.
ASX 300 Metals & Mining Index continues to consolidate between 3500 and 4000. Breach of 3500 would be a bearish sign for the broad market ASX 200 index. Primary down-trends on its two biggest sectors would be likely to drag the overall index down.
On the ASX 200, Twiggs Money Flow is holding above zero, suggesting light volume on the declines. Breach of primary support at 5650, however, would confirm a primary down-trend.
Offering a target of 5000.
I have been cautious on Australian stocks, especially banks, for a while, and hold over 30% cash in the Australian Growth portfolio.