We called for some volatility after the US data release and we certainly got it. A very weak day for the ASX with resources taking the lead lower. There is a lot of speculation about the US$ direction now. The ASX is coiling in a nice symmetrical triangle pattern and by all account an upside breakout will be very bullish, so long as 4587 is not breached to the downside in the interim. Broader US indices actually had a great day on Friday, including the Transports that finally broke through significant resistance. As much as today hurts the account we still see potential of a solid rally into Christmas. An upside breakout from this triangle will lead to a measured target of 5175.
** Note ** As of January 1st 2010 the current track record for the ASX Systematic Power Setups will be replaced by a real time trading account. This will ensure a much more accurate representation of results and slippage.
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