Chart includes after hours trading.
Friday, 28 October 2011
After hours trading is currently at 4422, up from Thursday's ASX close of 4348. The weekly log scale chart below shows the market to be trending down, implying lower prices in coming months. A sustained move above 4500 or so would neutralise the bearish view.
The S&P 500 has rallied as far as it can do without breaking the weekly chart bearish case. Point being, if it rallies over today's high and thereby breaks the trend line, I'll be forced to leave the bearish camp, and I'll move to the confused camp for a while til the trend at this time frame is clear.
The daily chart supports the view that for the bearish case to remain valid, the market needs to decline now, from nearby current levels. The Head and Shoulders neckline is being tested.