Indices: Australian ASX 200
The ASX200 has been meandering around the 7000 area basically all month and it wouldn’t surprise us if September delivered much of the same, pretty much in-line with our recent expectations. So far this year we’ve seen the local market fall by -16% and then bounce +11%, a period of ongoing consolidation is arguably what’s missing from the picture to add some balance although at this stage we believe the risks are still skewed to the downside.
Our preferred scenario has been that the ASX200 will begrudgingly pullback towards the 6900 area through September providing some excellent buying opportunities into the weakness but clearly, yesterday’s move was impulsive opening the way to a potential deeper pullback, time will tell but as MM is holding elevated cash levels we’re not concerned by either scenario. US stocks slid lower overnight with the S&P500 finishing down -0.67% pretty…
