Saturday, 7 April 2012

ASX 200 smashed lower by 1.5% in after hours trading

The ASX 200 closed the week's ASX trading on Thursday at 4320. In after hours trading on Friday night it moved almost 1.5% lower to 4260, falling in sympathy with US stock futures (see here), subsequent to the release of disappointing US jobs data early Friday New York time. The picture will change again before the ASX next trades, as the ASX is closed for Easter Monday, while the US stock exchanges will open on Monday night.

The daily chart shows the market has turned down strongly from the illustrated resistance zone.

The weekly chart provides context, showing the market is trading inside a long term down trend channel.

S&P 500 futures fall sharply

US stock exchanges were closed Friday, but US stock futures plunged subsequent to the release of disappointing US jobs data early Friday New York time.

The S&P 500 wedge has been broken to the downside.

A longer term chart shows that the market has turned down at the top of the trading channel defined by the price extremes of 2010 and 2011.

AUD/USD still above apex level

Not much change for the AUD/USD since my post on Thursday evening. A little bit of a surprise perhaps to see so little change, given that the S&P 500 futures got smashed on Friday. I have illustrated the apex level and the Elliott Wave correction A-B-C. See my recent AUD/USD posts if you want more details of the wave count or a chart of the apparent 0.618 Fibo retracement.

EUR/USD showing possible Head and Shoulders top

There are two sides to a coin. Until the trend line I have labelled as the neckline is broken, it could act as support and give birth to a rally, morphing the H & S in to something else.

Gold closes the week on long term trend line

Also of interest may be Peter Brandt's recent post showing a Head and Shoulder bottom possibly forming on the daily chart.

Silver long term chart