Trading Day – Monday

The S&P/ASX 200 is down over 80 points or 1.5% at midday, reversing all of last week’s gains. Fear is gripping the Asian markets as well, with the Nikkei down 1.3%, the Hang Seng down 1.55% and Singapore over 1%. The AUD is down below 1.06 at 1.0585 against the USD, whilst gold is above $1509 USD an ounce and WTI oil at $99 USD per barrel.

Daily charts show a lot of weakness overall and imply a probable sideways move around the 4600 and 4800 levels. If prices close below 4650 points, the next target level is 4500 points, for a 10% overall correction in prices since the April high.

Daily candlestick with linear regression channel since start of year and 21 day TMO

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Comments

  1. Okay I am cheating by using after hours quotes, but if the Aussie market is moving sideways, it’s only by the barest of margins.

    To my eye it is trending down on the daily chart, and a move below 4570 will raise the odds of the ASX 200 entering a down trend at weekly chart level.

    The odds of that happening are raised by the Chinese and US markets being perched on the cliff edge at the moment…. worth keeping a very close eye on.

    http://www.avidchartist.com/2011/05/asx-200-trends-down-s-500-at-edge-of.html