SCUTT: Aussie Stocks Can Buck This Bearish Trend

Just in from David Scutt at Arab Bank in Sydney, who reckons that even though US stocks have now fallen five days in a row, the ASX might surprise us all today and rally.

The ASX 200 looks set to start today’s session moderately in the red with SPI futures pointing to a fall of 11pts on the open. While this is merely reflective of the falls seen in offshore markets, given the index is up over 10% for the quarter, something that tends to see the index bid up in the days before quarter-end, coupled with the fact that it’s individual options expiry day today, another event that tends to see the index gain during the session, if history is anything to go by, at the end of today’s session, we should be looking at a closing level that is firmly in the black.

Here is a chart of the SPI200 from MT4 and you can see the Australian Market is right on support.

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