Monday, 10 September 2012

S&P 500 bullish edge, ASX 200 bearish edge, one must be false

The S&P 500's new high last week is a bullish edge.

The ASX 200's turn lower from trend line resistance two weeks ago is a bearish edge.

One of these edges must prove false in coming days or weeks, as the ASX 200 tracks the S&P 500 very closely, something that is especially apparent when they are both measured in the same currency.

Which edge will prove false? Of course, nobody knows. Combine this fascinating technical juncture with the week's big news agenda - Fed meeting (to QE3 or not to QE3, that is the question) and the expected ruling from the German Supreme Court on the legality of the Eurozone bailout - and perhaps we'll have our answer by week's end.