The ASX200 is set to make fresh February lows this morning, around the 8230 level, following broad-based losses on US bourses, where traders demonstrated no interest in going home long ahead of Trump’s next move. We’ve already gapped down too many times this year on a Monday morning! We’ve seen two similar pullbacks by the ASX in the last 12 months, but it is always unsettling when they occur, especially when MM advocates buying the dip. We turned neutral on the local market the day it popped its head above 8600, and we can see ourselves switching back to a “cautiously bullish” stance if/when the current weakness extends toward the 8100 area. The banks drove the losses last week; they could lead a recovery, but the bulls should temper any excessive expectations for 2025, in our opinion.
- The SPI Futures are calling the ASX200 to open down 0.75% this morning, with the miners likely to start the week off on the back foot – BHP closed down 75c in the US on Friday night.
MM remain neutral toward the ASX200
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