The struggle between miners and banks continues.
The ASX 300 Metals & Mining index is rallying strongly. Breakout above 3600 and the descending trendline suggests that the correction is over and a new advance is underway.
But the financial sector is being hammered by bad press from the Royal Commission and the ASX 300 Banks index is likely to test the 2016 low at 7100. Trend Index peaks below zero warn of strong selling pressure.
The ASX 200 index recovered above primary support level at 5800 but bearish divergence on Twiggs Money Flow continues to warn of long-term selling pressure. Retreat below 5800 is likely and would confirm the primary down-trend. Breach of mid-2017 lows at 5650 would strengthen the bear signal, offering a target of 5050 (the June and November 2016 lows).