ASX200 Index Analysis

Index – ASX200

The ASX200 was beaten down yesterday as fear gripped the market and traded right into our extension zone at 5850. We have seen a reaction higher today as the US had a major bounce but the ASX200 is not out of trouble yet. The Index needs to hold above this level and build some higher lows over time before the markets settle down and shares are able to reset and build buying opportunities again. We expect some volatility to continue as the market builds a base to work from. If price reacts higher and then sees another wave of emotional selling over the next few days, then it may be time to batten down the hatches.

Index : Index – ASX200

Current Price : 5892

Status : On watch for higher lows

Previous Alert 6/2/18

Index – ASX200

The ASX200 is under pressure from the open as sellers pile in after the DOW falls over 1100 points overnight. We see price as extended but it will still have a lot of work to do to increase the confidence of buyers. Support around the 5850 zone needs to hold today for a reaction higher. If not we may see some further selling pressure in the coming days.

Index : Index – ASX200

Current Price : 5855

Status : On watch for higher lows