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.
Download the full report here: Trading Day 9th May – MacroBusiness