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.