Euro-zone anxieties continue to trouble the market, whilst the benefits of Q3 in the US have lost their luster. This week our leading market indicator lost ground, briefly broke a trendline support but respected a support line at 4350, and in doing so, formed a higher low maintaining an uptrend. A number of analysts are pessimistically predicting a collapse in commodity prices, and further pain for Australian investors. Despite this, pull-backs are being treated as further buying opportunities, particularly for stocks that have been savagely oversold, and the close was up on the lows for the week. For the uptrend to stay on track will require gains this week which surpass the last high at 4420.
Categories: Trading opinion