XJO - no time to panicThe ASX has just broken its ATH on Monday at 7172 (although I'm told if you add in dividends, we're actually quite a bit higher). However, the moves today (and likely tomorrow judging by the US futures), will likely cause some concerns amongst traders. Its a relatively big move (at least for the last couple of months), but in the scheme of things, today is just 1% down.
From what I'm seeing the XJO just slightly above Monday open and around the high point of Friday. Nothing to worry about here.
In addition, the overall trend is still up and the Bollinger bands are starting to expand again after tightening last week.
TO me the ASX actually looks like it has broken out from a range it was stuck in over most of April, this could just be profit taking or a pullback after a big move yesterday. Although I suspect that it's entirely being driven out of fear arising from the US Markets.
All in all, I think these are pretty bullish markers currently.
I'm watching it closely and I think the telling point will be if the 50 day MA is breached at around 6900.
Anyway, happy trading and if you like this post, check out my blog at www.nickthetraderguy.com.
Cheers,
Nick the Trader Guy
