All Ords breaks 6000

The All Ordinaries Index broke resistance at 6000, signaling a primary advance. Long-term target for the advance is 7000, but wait for retracement to respect the new support level.

ASX All Ordinaries Index

The ASX 200 closed above 5950 but below its 2015 high of 6000, indicating that small caps are advancing slightly faster than large caps.

ASX 200

The ASX 300 Banks index faces stubborn resistance at 8800. Reversal below the medium-term trendline at 8600 would warn of another test of primary support at 8000. With low capital leverage ratios and Sydney house prices now falling, the sector may be headed for testing times.

ASX 300 Banks

The ASX 300 Metals & Mining index is more bullish, breaking resistance at its three-year high of 3300 to signal another primary advance. I remain cautious because of iron ore weakness and rising Chinese interest rates but retracement that respects the new support level would confirm the advance.

ASX 300 Metals and Mining

The Australian Dollar is falling, iron ore is weak and banks face headwinds but the overall outlook remains (surprisingly) bullish.

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