{"id":64402,"date":"2026-05-09T13:04:06","date_gmt":"2026-05-09T13:04:06","guid":{"rendered":"https:\/\/thepatientinvestor.com\/?p=64402"},"modified":"2026-05-09T13:57:25","modified_gmt":"2026-05-09T13:57:25","slug":"asx-market-snapshot-23","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2026\/05\/09\/asx-market-snapshot-23\/","title":{"rendered":"ASX Market Snapshot"},"content":{"rendered":"
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\"Bull\/Bear<\/div>\n
\"Stock<\/div>\n<\/div>\n

The gauge on the left indicates whether the market is in a bull or bear phase, while the one on the right reflects the current valuation of the stock market. Stock market pricing indicates whether stocks are cheap or expensive in relation to earnings, but it is a poor indicator of market timing<\/strong>. We do not recommend selling stocks when market valuations are high, but we advise caution when adding new positions.<\/p>\n

Bull\/Bear Market<\/h2>\n

The ASX Bull-Bear Leading Index remains at 64, indicating a mild bull market. One of four Australian indicators and one of two Chinese indicators signal risk-off. The improvement in recent weeks is due to changes to the composite indicators for the US Leading Index, which has a 40% weighting in the ASX Index.<\/p>\n

\"ASX<\/p>\n

Financial Sector<\/h3>\n

Financial sector performance reflects confidence in the broader economy, particularly in the housing sector. The ASX 200 Financials Index (XFJ) had a weak close to the week, but remains above its 50-week weighted moving average and primary support at 9000, signaling risk-on.<\/p>\n

\"ASX<\/p>\n

China<\/h3>\n

China is Australia’s largest export market, and the performance of the Chinese economy directly impacts the ASX. The OECD Composite Leading Indicator lifted to 98.8 in April, from 98.49 in March. A fall of more than 3 points from the preceding peak, or values below 99.0, signal risk-off.<\/p>\n

\"China:<\/p>\n

Stock Pricing<\/h2>\n

ASX stock pricing jumped to 76.72 percent, from 73.92 percent last week. The highest reading was 92.23 percent in August 2025, compared with a low of 67.85 percent in April 2025.<\/p>\n

\"ASX<\/p>\n

We use z-scores to measure each indicator’s current position relative to its historical data, with results expressed in standard deviations from the mean. We then calculate an average of the five readings and convert that to a percentile. The higher stock market prices are relative to their historical mean, the greater the risk of a sharp drawdown.<\/p>\n

Conclusion<\/h2>\n

The ASX bull-bear indicator at 64% signals a mild bull market, while stock market pricing remains high, increasing the risk of a drawdown.<\/p>\n

Acknowledgments<\/h4>\n