The ASX has had a great week relative to the maelstrom that has been global markets recently.
Certainly the local market had pre-empted offshore selling and the iron ore bounce, which evaporated somewhat last night, helped.
But there is a very solid technical reason that buyers have also suddenly emerged at a time when global markets everywhere else were in a funk. The ASX, or at least the SPI 200 futures contract, has been in a very strong uptrend channel for two years now.
This channel has marked both the lows and, significantly, the highs of daily and weekly trade for the last two years and earlier this week buying emerged at the trend line.
When futures bounce the physical market tends to follow and while this line, which comes in today around 5100 holds the uptrend remains intact and the buyers will remain.