Iron ore continues to test support at $94/tonne. Breach of support would signal a decline to test $80/tonne.
The ASX 200 broke support at 6450/6500 after a hesitant rally, warning of a decline to test support at 6000. Descending peaks on Twiggs Money Flow signal rising selling pressure.
The ASX 300 Banks index retreated from resistance at 8200 and is testing the rising trendline. Penetration is likely and would warn of another test of primary support at 6750.
We maintain a bearish outlook for Australian stocks and reduced our exposure to 30% on 5 August 2019.

Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.