Further market weakness

Long only investors who hoped that the retracement would be brief, and that the market would quickly resume its uptrend, would have been disappointed by the down-turn yesterday and today, breaking support at 4950.

On technical groups, the expectation is that the turn-around will be between 4650 and 4850, a range which now appears more likely.

Since it is not possible to pick market lows, it still seems to be sensible advice to look for bargain prices in quality companies.

A major potential blot on the investment horizon is the aggressive stance of North Korea raising the spectre of conflict on the Korean Peninsula.

Weekly Market Update from “Trading for Blondes”

http://tradingforblondes.com.au/category/blonde-weekly-updates/

A map of the Korean peninsula. The estimated location of the test (41.311°N, 129.114°E) is marked in red. (Photo credit: Wikipedia)

Related articles

• U.S. Isn’t ‘Getting Too Jumpy’ on Kim Threats, Rice Says (bloomberg.com)
• View from space: North Korea and South Korea (earthsky.org)
• North Korea: US Deploys Spy Plane To Japan (news.sky.com)
• North Korea asks Russia to consider evacuating embassy (indrus.in)
• Gillard to call for greater regional co-operation on North Korea (abc.net.au)
• North Korea issues foreign embassy warning (abc.net.au)
• Navy destroyer moved closer to Korean peninsula (king5.com)
• Military And Intelligence News Briefs — April 6, 2013 (warnewsupdates.blogspot.com)

Categories: Chart Analyses, Technical Analysis

Tags: Fibonacci retracement, Market trend, Technical analysis