In this post are 2 yearly charts of the All Ordinaries Index, the first from Incredible Charts, the second from Metastock using Paritech data. They look back on the extraordinary two day fall of the ASX on the 5th and 6th February 2018, which followed a record breaking one day fall in percentage terms of the Dow-Jones Industrial Average.
My post of the 6th February considered the implications of this 5% fall of the XAO and how Australian investors might respond. It recommended continuing close monitoring of the XAO to differentiate between a temporary market retracement, presenting buying opportunities, and a more sustained worrying correction in which investors should consider selling-down positions to reduce the risk of furthers falls.
Two months later, the dilemma has still not been unequivocally resolved, with the USA continuing on a path of global trade barriers, and continuing tensions in foreign affairs.
The initial rebound in the XAO was followed by a down-trend, but up until a week ago the index had remained confined within the bounds established by the 5/6th February range. It is now testing support at 5900 for a total fall of 5.4%.
Categories: Chart Analyses, Trading opinion
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