Indices: Australian ASX 200

The ASX200 has rallied further than we expected from its June low and the prospect of a break back under 6400 feels like it’s diminishing fast, but we do still expect a decent pullback in the coming weeks/months and the latest Bank of America Fund Managers Survey out overnight added some weight to this standpoint:

The ASX200 knocked on the door of its August high yesterday before finally closing up +0.45% on broad based buying which saw over 67% of the main board close in positive territory. If it hadn’t been for a disappointing report from Bendigo Bank (BEN) which fell over 8% dragging much of the sector down in sympathy we could have been testing 7100 but with Commonwealth Bank (CBA) trading ex-dividend $2 fully franked on Wednesday it may prove a touch too much to ask this week.