A tall shadow on the ASX 200 indicates short-term selling pressure and a likely retracement to test its new support level at 8100.
Financials continue their advance, but gradually, with lower Trend Index peaks warning that buying pressure is fading.
The ASX 300 Metals & Mining Index hesitated after its recent rally and will likely re-test short-term support at 5200. Penetration of the descending trendline indicates that the downtrend has weakened, and a correction that respects support at 5000 would confirm that a bottom has formed.
Iron ore continues its downtrend as Chinese industrial demand weakens. A breach of support at $90 per tonne would confirm our target of $80.
However, the All Ordinaries Gold Index broke resistance at 8500, signaling another advance with an expected target of 9000.
Conclusion
The ASX 200 is retracing to test support at 8100. Respect will likely confirm another advance with a target of 8500. Financials and gold miners are strong, but iron ore remains in a downtrend with a long-term target of $80 per tonne.