Friday, 21 October 2011

ASX 200 set to open slightly higher

After hours trading is currently at 4154ish, compared to Thursday's ASX close of 4145.

Repeating what I wrote last night "while the bounce downwards from the trend line earlier in the week supports the bearish potential, so long as the market continues to trade above the bullishly crossed 18 and 40 day moving averages, the bears should not get too carried away" at least in the short term. Long term there is no doubt the trend is down.

A move below the 40 day moving average would support an stronger near term bearish stance.