From Port Phillip Insider (AUSTRALIA)-
Today’s The Age headlines, ‘Technically, the ASX could fall to 5000’.
Sure. But, technically, it could fall to zero too.
- We get the point. The writer is referring to technical analysis, and support and resistance levels.
But when we look at the chart of the S&P/ASX 200, maybe it’s our current bearish outlook, but we see the potential for a much bigger fall — perhaps to 4,000 points…or lower.
We’ll concede it’s possible that we’re being overly bearish, but right now, if we had to bet either way, our money would be on following the direction of that red arrow.
Overnight, the Dow Jones Industrial Average fell 57.66 points, or 0.33%.
The S&P 500 fell 3.74 points, or 0.18%.
In Europe, the Euro Stoxx 50 index dropped 56.34 points, for a 1.97% fall. The FTSE 100 fell 2.01%, and Germany’s DAX index lost 1.43%.
In Asian markets, Japan’s Nikkei 225 index is up 74.16 points, or 0.47%. China’s CSI 300 is up 1.42%.
In Australia, the S&P/ASX 200 index is down 18.16 points, or 0.35%.
On the commodities markets, West Texas Intermediate crude oil is trading for US$47.83 per barrel. Brent crude is US$49.16 per barrel.
Gold is trading at US$1,284 per ounce, while silver is US$17.40 per ounce.
The Aussie dollar is worth 73.71 US cents…