The S&P/ASX 200 is down almost 1% to 4755 points from a 4971 point high on the 11th April, a 4.3% total loss in the current dip. Momentum and other technical indicators continue to be very negative. The small short-lived Easter rally looks like being the “dead cat bounce” as part of an overall correction in the market.
Even though the RBA held off another rate rise, overseas markets are weighing on the ASX, as gold/silver, AUD/USD, the EUD/USD and US/EU equity markets all pausing or falling in recent days.
Banks are weighing on the market with nominally good results from ANZ and WBC failing to impress. NAB reports tomorrow and CBA on Tuesday next week. The next leg down in the ASX200 could take it to 4700 points, which would be the mid-range for a correction (approx. 5%) phase.
Download the full report here: Trading Day 4th May 2011