The ASX 300 Banks index followed through after breaching primary support (at 8000) last week. Bearish divergence on the Trend Index confirms strong selling pressure. Expect a primary decline to target the 2016 low at 7100.
The ASX 200 index slipped below primary support at 5800 this morning, warning of a primary down-trend. A close below 5800 this afternoon would strengthen the signal. Bearish divergence on Twiggs Trend Index signals selling pressure. Expect a test of the June to September low at 5650. Breach of 5650 would confirm a primary decline and target the June and November 2016 lows at 5050.