The S&P/ASX 200 is down slightly at midday, with strong intra-day selling pressure. Asian markets are mixed, with the Nikkei down a little but Hang Seng and Singapore up. The AUD is steady at 1.07 against the USD and 86.5 against the Yen (which is highly correlated with the ASX200)
Short term price action as illustrated last week showed a decelerating correction – but the short term still remains bearish until a close above 4800 points is evident. Current conditions remain a buy zone for investors who believe in a strong Australian economy and for the standard “9% a year” rising stock market paradigm to continue.
The major trend and support line is 4700 points – a close back to below this area would be a clear sell/short zone.