The Australian Stock Market Is Tumbling Again

Didn’t the Dow bounce last night?

You wouldn’t think so because even though the Aussie stock market is trying to bounce off its lows – the positivity from last night’s rally in US stocks didn’t last long with the ASX down 29.7 points (it was down 44.4 points at one stage) to 5067 in trade this afternoon. Indeed the ASX has been in the red ever since it dipped below yesterday’s close around 11 am this morning.

Likewise the March SPI 200 contract is off 43 points at 5007 bid after a brief dip below the psychologically important 5000 level this afternoon.

It’s all coming from offshore it seems because the Australian market is thin at the moment with little natural business. Traders and investors, sensibly you might say, are on the sidelines and a market veteran of more than 30 years (who asked to remain anonymous) told Business Insider, it’s a case of “the tail waging the dog. Moves in our market are being channelled through futures as a result of moves in offshore markets.”

So tonight’s moves will determine if technical targets in the 4900’s are really on the cards.

www.incrediblecharts.com

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