The ASX200 rallied +0.6% yesterday taking it within a few points of the psychological 7200 area, over 60% of the main board advanced, and when that’s combined with CBA, BHP, and CSL rallying it’s always likely to be a positive day for the local index. An indication of how open-minded we all must be towards today’s market was provided by the strongest area of the ASX being the Energy Sector which advanced +2.5% taking Woodside Energy (WDS) to within 3% of fresh 8-year highs while the crude oil price languishes -25% below its June high and down -12% over the last 3-weeks i.e. the obvious extrapolations clearly aren’t always working.
- We continue to look for the local market to rally in a “3 steps forward, 2 back” fashion, at this stage selling strength will be our main focus.
The SPI Futures are pointing to a strong opening this morning taking the index up to 7240, levels not enjoyed since May. A weak $US overnight is set to push BHP back above $44 while the Energy sector should again perform if we follow the US lead.
MM remains mildly bullish on the ASX200 into Christmas
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