The S&P/ASX 200 closed up strongly today, 63 points or 1.5% to 4263 points.
Asian markets experienced similar gains, with the Nikkei 225 closing 0.61% higher at 8851 points, and the Hang Seng up 1.57% at 19891 points.
In other risk assets, the AUD increased further and is now above 1.06 against the USD, whilst WTI crude gained slightly to $85.73 USD per barrel. Gold is up over 1% to $1818 USD an ounce after a shaky Asian session.
Movers and Shakers
It’s green across the board on the ASX today, with all sectors up, utilities the standout again up 2.6%. Volatility still abounds due to earnings reports and stocks going ex-dividend, FKP Property (FKP) up almost 8% .
The banks were all up, with ANZ up 1.8% (amid news it is looking at buying a Japanese bank), CBA 1.25%, WBC up 1.85% and NAB up 1.25%
BHP Billiton (BHP) closed the day up 1.3%, whilst RIO rallied strongly, up over 2%. Woolworths (WOW) reversed some of its prior falls, up 0.7% whilst Bluescope Steel (BLS) shot up 3%, possibly on more short covering (Disclosure: guilty as charged)
The Charts
Note: due to a data problem I am unable to create a daily chart today, should be resolved by tomorrow.
In the short term, there is strong resistance at 4325 points – the high reached during the rebound rally from the epic correction of early August. Failure to breach this level will likely send the market back down to 4100 points, or even to the closing low of 4000 points.
The weekly chart is more revealing – note the support at 4100 points, now tested for four weeks in a row, with target resistance of 4500 points. The Index is building on strong levels of support but a quick glance to the left shows a similar pattern during the post-Greece Crisis (Mk1) of May last year.
Weekly chart of ASX200 - click to enlarge
The 260 day weighted moving average (pink) line is trending down, and turning over sharper than last year’s sideways funk – its still a bear market, although a rally up to 4500 points is conceivable and completely normal in the context of a bear market rally.