Tuesday, 17 September 2013

ASX 200 completed throw-over from wedge indicates strong decline is beginning

The ASX 200 daily chart including after hours trade shows a completed throw-over / false break from a bearish wedge, indicating that a strong decline is beginning. That's not a forecast, but a trading stance, which would be proven wrong by a move above yesterday's high. Other factors supporting the case for a decline to begin now are many, I'll list a couple. Huge inter market divergence between S&P 500 futures and US small caps which both hit record highs yesterday, while the S&P 500 cash market did not. Also US stocks are entering the seasonally weakest period of the year. Anyway that's all just words. Risk control levels on the ASX 200 are clear and nearby, and we'll see what happens.