Tuesday, 18 February 2014

ASX 200 weak, weak, weak on weekly and testing dual trend line resistance on daily

Weekly chart shows the ASX 200 floundering below the Fibo 0.618 retracement of the decline from the 2007 peak to the 2009 low, having peeled away lower from mid channel resistance. This flaccid showing contrasts with all the other markets around the world that have recently made record highs or at least beaten their 2007 peaks. Chartists don't need reasons why, but if YOU do, remember that the stock market discounts everything, and think housing mega bubble now expanded to completely delusional proportions, death of mining investment boom, and the ever expanding mass graveyard filled with decaying bodies of Aussie manufacturers and industry more broadly.


Will the market beat the highs of last year? Nobody knows, but to have a chance, it must move higher from the current test of dual trend line resistance, shown below on the daily chart. Fair odds it'll turn lower instead.


Both the above charts include after hours trade.

Yep I know I said Goodbye back in early January. Might pop my head up again from time to time as the mood takes me.