ASX finds support

The ASX 200 respected its new support level at 5600. Twiggs Money Flow respected the zero line, suggesting buying pressure. Follow-through above 5750 would offer a target of 6000*.

ASX 200

* Target medium-term: 5800 + ( 5800 – 5600 ) = 6000

2 thoughts on “ASX finds support

  1. Graham says:

    Colin,

    This is the start – in Australia – of 3rd , and FINAL , upleg in the Bull Market that started in March 2009.

    The USA, FT and DAX 3rd up-leg had started early in November.

    We proceed from here to ultimate highs – globally ( and including property , also Aussie property ).

    Then this euphoric phase ( can last 18-24 months) becomes exhausted causing the ‘revert-to-mean’ collapse – the former is accompanied by optimism which later becomes irrational exuberance, leading to the latter.

    Buy industrials – especially the high risk underperformers – very aggressively.

    Dow Theory being played out – classically – in terms of the three up-leg waves in USA:
    1. March 2009 to June 2011 ;
    2. December 2011 – Mid 2015 ;
    3. Jan 2016 – (Jan 2018 ??) = current 3rd Wave

    Easy ….. peesy …. ( an expert makes it look easy ??? )

    Cheers, best wishes and thanks for your service provision and your wise comments.

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