The market is continuing a broad selloff, as the major constituents across all sectors are down after midday. The ASX200 is down almost 0.75% and is teetering below support at 4800 points.
Momentum and other technical indicators are negative but not conclusive of a broad correction as this is likely to be a dip that will turn into stagnation coming into the end of the financial year. Eyes are on the banks which report earnings this week (CBA early next week – see calendar at end of report).
Some small caps are approaching value again after exuberant bids of the last couple of months. But are we seeing “sell in May and go away” in action?
Download the full report here: Trading Day 2nd May 2011