Ugly start on the ASX200

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by Chris Becker

Its an ugly start today on the local share market, with the ASX200 down nearly 1.5% on the open, with financials leading the way after NAB’s shock $5.5billion rights issue.

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The technical position here is dire if we close today or this week in the red, with 5500 points the next target:

xjo_ax_price_weekly_and_commodity_channel_index___weekly___40_periods.14jun13_to_12jun15
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With the April construction PMI reverting back to its downtrend after a momentary blip, the employment report at lunchtime will be critical for the future direction of the ASX200. A strong report with an RBA unwilling to cut further will imply no further monetary support to keep stocks afloat as I’ve showed earlier here.