ASX200 Remains Stuck – Market Update


The ASX200 index continues to do very little as it moves up to the key 5800 level only to be sold off again.  We are now at the end of the reporting season and any ‘what ifs’ and ‘let’s just wait and see’ leading into the reporting season are now over.

It is almost as if the market was waiting for a spark or an indication from the reporting season of where to head next.  Something that obviously hasn’t materialised.

As I mentioned a couple of weeks ago and I still feel this way is that it is incredible that the US’ S&P500 index has not only recovered from the GFC 2008 losses, it has moved another 50% higher than the 2007 highs.

What has the S&P/ASX200 done since 2007?    It remains around 1000 points lower than the 2007 highs, or roughly a little under 20% below.

I am not sure there is much more I can say about the ASX200 Index, as it continues to do little.  As you can see on the chart below, the selling pressure / resistance continues at 5800.

The all time highs / lows reading this week is 14 / 5.   Some of the all time highs include the A2 Milk Company,, Treasury Wine and Blue Sky.  The lows include Myer, Ding Sheng, and Freelancer.

The 14 is a reasonable number considering how the general market is performing.

Daily chart of S&P/ASX200 Index | Image from MetaStock


In the last couple of weeks the Australian dollar has rallied a little off support around 0.78 however it has also recently run into some resistance just shy of 0.80 at 0.7950.

It appears to be attempting to get some support from around 0.79 presently however it obviously the round number of 0.80 ahead of it too.  Around a month ago, it made repeated attempts to move through this level however it was rejected every time.  The price action over the last few weeks indicates how significant the 0.80 level now is.

If it was to continue to ease lower, you could reasonably expect the 0.7750 level to kick in and provide some measure of support, as this level has provided resistance several times over the last 12 months.

As I type this, it is currently trading around 0.7902.

Daily chart of AUDUSD | Image from MetaStock

Important Information

This material is made available by Trading Excellence Pty Ltd (ABN 11 096 024 958) (“Trading Excellence”) and Stuart McPhee who is an Authorised Representative (No 276438) of Australian Stock Report Pty Limited (AFSL 301682 – ABN 94 106 863 978)(“ASR”) and Amalgamated Australian Investment Solutions Pty Limited (AFSL 314614 – ABN 61 123 680 106)(“AAIS”).

This blog is prepared and disseminated for information and discussion purposes only. It is neither an offer to buy or sell securities, or any other financial products nor a solicitation of an offer to buy securities or other financial products. To the extent that any of the content of this website constitutes advice, it is general advice as opposed to personal advice.

Opinions, estimates and projections constitute the current judgement of the author as at the date of publication. They do not necessarily reflect the opinions of ASR, AAIS or any of the related entities, and are subject to change without notice. Whilst the information presented herein is believed to be reliable and sourced from public sources believed to be reliable, ASR and AAIS do not make any representation as to its accuracy or completeness. Past performance is not necessarily indicative of future results.

ASR and AAIS have no obligation to update, modify or amend this publication or otherwise notify a recipient if any opinion, forecast or estimate contained herein changes or subsequently becomes inaccurate.

Employees and/or associates of ASR, AAIS and its related entities may hold one or more of the stocks, securities or investments reviewed in the newsletter or on the website. Any personal holdings by employees and/or associates of ASR and AAIS and their related entities should not be seen as an endorsement or recommendation in anyway.

ASR and AAIS’ Privacy Statement and Financial Services Guide can be obtained upon request.

No part of this document may be reproduced in any form without the prior written consent of Trading Excellence Pty Ltd.

© Trading Excellence Pty Ltd 2017. All Rights Reserved.