Monday, 23 April 2012

Avid Chartist is now on Twitter

Avid Chartist is now on Twitter.

Hopefully (fingers crossed) future posts will be automatically tweeted. Though this is a test of that theory... it might take me a little while to get the hang of this new toy.

ASX 200 bearish evidence beginning to bear fruit

On Thursday evening I listed five arguments in favour of a bearish outcome for the ASX 200 in the months ahead. The bearish evidence is beginning to bear fruit, with the ASX 200 declining today, and further declines seen this evening in after hours trade, in sympathy with weakness in key European and US markets.

The daily chart of the S&P/ASX 200 shows a clear double top at the April 2 & 18 highs. The signal would be confirmed by a move below the April 11 & 12 lows at 4246.

The next chart includes after hours trading, which shows that the market has declined to 4331 from this afternoon's ASX close of 4352. Notably, the market has declined below the resistance zone that I have been showing for some weeks. Every previous move lower from that zone preceded further decline.

DAX and NASDAQ 100 move lower

For several months prior to late March, the NASDAQ 100 lead US stock indexes higher, and in sympathy the German DAX lead European markets higher.

Both the DAX and NASDAQ 100 are now trending down. The DAX has declined almost 3% in trade today, while NASDAQ 100 futures are sharply lower.