Monday, 6 May 2013

ASX 200 beware new highs in April and May

The weekly chart of the ASX 200 illustrates that in 2010, 2011, and 2012 the market made marginal new highs in April or May, then declined powerfully, anywhere from 10% to 25%. How about 2013? We've got a marginal new high in May. The latest in the series of parallel trend lines may also be significant. Will history repeat and give us a decline from nearby current levels?