Sunday, 28 February 2016

ASX 200 set for first monthly close < 5000 since 2013

Monthly chart shows the ASX 200 closed all sessions trade last week at 4873ish. Barring a fierce rally on Monday it will show a monthly close below 5000 for the first time since 2013. A rally, though slightly less fierce, is also required to take the market to a monthly close above trend line support.

Daily chart next. Earlier today I posted charts for several other markets around the globe and am near term bullish on all of them. If (if) I am correct in that view, the ASX 200 should rally soon too. Perhaps it is building the right Shoulder of a Bullish inverse Head & Shoulders bottom?