Trading Day

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Another volatile day on the S&P/ASX 200 Index, with a large absorption of data, closing down 25 points or 0.6% today to 3872 points. The market is up slightly in the after hours futures market.

Asian markets had larger falls, Japan’s Nikkei 225 closing down 1% at 8452 points, and the Hang Seng also down 1% to 16654 points..

In other risk assets, the AUD broke below 95 cents, before coming back up after the RBA held on rate rises, and is currently trading at 95.07 cents USD, whilst WTI crude lost 0.75% and is at $77.03 USD a barrel.

Gold has diverged from the “undollar” correction, putting on nearly one percent in the Asian session, currently at $1672 USD an ounce or $1756 AUD an ounce. This has formed a bullish pennant in the short term, good for Aussie holders:

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Movers and Shakers
Another red board on the ASX, with all sectors down, the biggest losers in telco and healthcare materials sectors.

Most of the banks were down, with ANZ the only winner up 0.2%, Commonwealth (CBA) off 0.84%, NAB 0.8% and WBC also down 0.8%. Macquarie (MQG) got slugged again, down 3%

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Cochlear (COH) lost 1.8%, whilst CSL lost over 2%, with both stocks providing the losse for the healthcare sector.

BHP Billiton (BHP) was down 0.8% and Rio Tinto (RIO) 0.5%, whilst Newcrest Mining (NCM) was bid up 1%, and Fortescue (FMG) down 0.7%

Mincor (MCR) was the biggest winner on the ASX200 today up 8%, whilst takeover target Sundance (SDL) providing a nearly 6% gain alongside a slew of minor resource stocks. The biggest loser was David Jones (DJS) down over 6%.

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The Charts
Today I’m using Colin Twiggs chart of the ASX200, whose trading blog I recommend (Disclosure: I use his charting software).

The trend channel (light grey lines) from the April high has daily prices dominantly on the lower half, breaking through support at 4000 points (orange line).

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This support level is turning into solid resistance (as did the 4500 level in July) and the target for this continued downtrend remains in the 3700-3800 zone.

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