“Bears” grip on the Australian Market weakened..

Bernanke’s announcement of a third round of quantitative easing this week was greeted with enthusiasm by  the markets sending global share indices soaring. With such an emphatic response traders will be wary of going short now, whilst reduced volatility should attract more investment funds back into the share market.

Despite the more bullish outlook which saw the XJO regain the losses of last week and test the 4400 resistance of the last high, it will need further buying strength next week to ensure that the index penetrates this resistance and a decisive new high is created, to maintain this impulsive move higher.

Categories: Trading opinion

Tags: ASX 200 charts