The S&P/ASX 200 is down over 1%, or 51 points at 4773 at 1pm AEST, below support at 4800 points.
Momentum and other technical indicators are very negative as this broad selloff continues to hit all sectors. Three consecutive closes below the 15 day moving average are indicative of a correction pattern, but medium term momentum and cyclical indicators do not confirm a correction yet. The next support level is 4700 points, but a correction could overshoot to 4500 points, particularly if the RBA applies the brakes and raises rates, thus increasing the AUD (again) and pushing the industrials further into negative territory.
Eyes are still on the banks which report earnings this week, with ANZ reporting record profit but the stock falling over 1%. This may bode ill for the other banks, with NAB in particular already overbought in the short term.
Download the full report here: Trading Day 3rd May 2011