Weak red candles on the ASX 200 Financials index indicate support at 5900/6000. Rising troughs on Twiggs Money Flow flag buying pressure. Falling housing prices have not yet made a dent in investor confidence. Penetration of medium-term support at 5800 would warn of another test of primary support at 5300 but a rally is more likely.
Materials respected their new support level at 12500, benefiting from high iron ore prices.
The ASX 200 is consolidating at 6200 but continuation to test resistance at 6300/6350 is likely.
Expect stubborn resistance at 6350, followed by a correction.
I remain cautious on Australian stocks and hold more than 40% in cash and fixed interest in the Australian Growth portfolio.