Hourly chart of all sessions trade, with the S&P hitting new highs in European trade tonight.
Thursday, 14 March 2013
I have been tracking the ASX 200 on the daily chart in recent weeks, most recently earlier today, when I illustrated a big downwards trend line break. With European markets up tonight plus S&P 500 and ASX 200 futures rising, I flicked to the hourly chart for a look, and saw that a trend line which I drew back in November has come in to play. Today's move lower could (could) be a false break through that line. For that to play out we'd have to see the ASX 200 back above 5050 in the coming 24 hours. Let's see.
Today the ASX 200 smashed lower from the up trend channel that has contained market action since the November low. What next? Wish I had as many answers as questions. Nah not really, much of the fun in this caper is the challenge of following the twist and turns as they happen, and remaining unemotional enough to trade accordingly. Would be boring to know the future, despite the guaranteed riches.
Weekly chart shows a small upside break. Look for a false break? That's what my gut reckons, but you'd be better off trading based on what the market does than what my gut hints. Let's see.
Daily chart poses the question, will the mid February highs provide enough resistance to enable a false break? So far they have, though above 1.04 would argue they've failed to hold.