A long-term, monthly chart filters out most short-term market ‘noise’. The ASX 200 has found stubborn resistance at 6000, while bearish divergence on the Trend Index warns of selling pressure. Follow-through below 5900 would warn of a test of primary support at 5600/5650. A primary down-turn on ASX banks would strengthen the bear signal.
The ASX 300 Metals & Mining index continues in a primary up-trend. Respect of the rising trendline remains likely and would suggest another primary advance.
The ASX 300 Banks index rallied strongly in 2016/2017 but bearish divergence on the Trend Index now warns of strong selling pressure. Breach of primary support at 8000 would signal renewal of the primary down-trend, with a target of 7000. A down-trend in its largest sector would weigh on the entire ASX 200 index.