Wednesday, 17 April 2013

ASX 200 should rally toward top of support zone this morning as US stocks bounce

Weekly chart of the ASX 200 including after hours trade shows the market has rallied back toward the top of the resistance turned support zone. A move back over 5000, and especially back above last week's high, would call for continued rally to test the 2013 high.

Over to the US, where stocks rallied overnight, and a quick look at the NASDAQ 100 daily chart. Yesterday I wrote that a break lower from the wedge would be ominous. The lower trend line held fast, and while it continues to hold this index is trending up, regardless of that possible wedge.