ASX200 Weekly Chndlestick chart, June 29
The ASX 200 index retreated all week in the wake of anxieties over the debt levels of Spanish banks. Despite this support held at 4000, an optimistic consideration for Dow theorists who consider that the first stage of a bull market is when averages (indices) fail to retreat to new lows.
Directional change came during Friday trading following news of a financial bailout for the banks, and plans for a central European banking authority. The strength of the movement higher to close at 4094 was heartening for investors with long positions, but the weekly chart shows the index to be still at the lower end of its trading range. In short, encouraging, but it is still too soon to call an end to bearish sentiment.