The S&P/ASX 200 is up 1% at almost 4800 points after finding a bottom late last week. Other Asian markets are mixed, with the Nikkei down a little but Hang Seng up, Singapore steady after their weekend election results.
Short term price action as illustrated last week showed a decelerating correction – it looks like given the strength of todays action and the digestion of overnight commodity prices that this is a new rebound rally.
The major trend and support line is 4700 points – a close back to below this area would be a clear sell/short zone for the index. Bank stocks are rallying strong, and the “twins” BHP and RIO have reversed course and are up for the day so far.
As I said on Friday, internal scans of ASX100 constituents showed lots of bottoming and intra-day resilience and again, this is evident today. Get your powder ready.
Download the full report here: Trading Day 9th May – MacroBusiness