The S&P/ASX 200 jumped almost one percent at the open this morning, and has since advanced strongly to 4580 points, up 50 points or 1.1%.
Asian markets are a bit maixed, with the Nikkei 225 steady at 9796 points, and the Hang Seng up 0.95% to 22,271 points.
Other risk assets are also up, the AUD advancing strongly, now at 1.071, whilst gold also stronger at $1511 USD an ounce. WTI crude is up at $94.90 USD per barrel.
Movers and Shakers
It’s mainly green across the board with all sectors advancing. The four major banks are providing most of the gains, with ANZ up 1.48%, CBA up 1.13%, NAB up 1.27% and WBC up 1.15%.
BHP is up almost 1% to $43.56, whilst RIO is up 0.84% to $82.37
In other ASX200 stocks, Paperlink is up 27% followed by Platinum Australia (PLA) up nearly 11%. CSL continues to be bid up strongly, up 2.6% to $33.14 (recently upgraded by Macquarie).
The losers include Gindalbie Metals (GBG) down 4%, nickel miner Minara (MRE) down 2.7% and ERA down 1.5%
The daily chart has finally shown something different – a breakout from the downtrend channel. There is still significant downward pressure on the index as the next critical level is 4700 points. As I’ve been saying the 4500 points level has switched to support on the back of (another) Greek bailout. Technical indicators only suggest a small rally at this stage, with no confirmation of momentum or directional range.
The end of financial year shows how the last 3 trading weeks have closed on or above the 4500 point line, as shown below. The market has effectively traded sideways between 4200 and 5000 points for the last 2 years, with a mid pivot point of around 4700 points. This is my target for the current rebound rally, if no further stimulus (either QE3 or steady interest rates in EU) is forthcoming.