ASX200 Remains Stuck – Market Update

ASX200

The ASX200 index continues to do very little as it moves up to the key 5800 level only to be sold off again.  We are now at the end of the reporting season and any ‘what ifs’ and ‘let’s just wait and see’ leading into the reporting season are now over.

It is almost as if the market was waiting for a spark or an indication from the reporting season of where to head next.  Something that obviously hasn’t materialised.

As I mentioned a couple of weeks ago and I still feel this way is that it is incredible that the US’ S&P500 index has not only recovered from the GFC 2008 losses, it has moved another 50% higher than the 2007 highs.

What has the S&P/ASX200 done since 2007?    It remains around 1000 points lower than the 2007 highs, or roughly a little under 20% below.

I am not sure there is much more I can say about the ASX200 Index, as it continues to do little.  As you can see on the chart below, the selling pressure / resistance continues at 5800.

The all time highs / lows reading this week is 14 / 5.   Some of the all time highs include the A2 Milk Company, Kogan.com, Treasury Wine and Blue Sky.  The lows include Myer, Ding Sheng, and Freelancer.

The 14 is a reasonable number considering how the general market is performing.

Daily chart of S&P/ASX200 Index | Image from MetaStock

AUD/USD

In the last couple of weeks the Australian dollar has rallied a little off support around 0.78 however it has also recently run into some resistance just shy of 0.80 at 0.7950.

It appears to be attempting to get some support from around 0.79 presently however it obviously the round number of 0.80 ahead of it too.  Around a month ago, it made repeated attempts to move through this level however it was rejected every time.  The price action over the last few weeks indicates how significant the 0.80 level now is.

If it was to continue to ease lower, you could reasonably expect the 0.7750 level to kick in and provide some measure of support, as this level has provided resistance several times over the last 12 months.

As I type this, it is currently trading around 0.7902.

Daily chart of AUDUSD | Image from MetaStock

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Stuart McPhee
Stuart McPhee

Australian private trader for nearly 20 years, author, trading coach, licensed adviser and regular speaker at major trading events all around the world. Graduate of RMC Duntroon and former Australian Army Officer.