| Weekly Trend: | Down | |
| Daily Trend: | Down | |
| Daily Momentum: | ___ | Up |
The trend remains down. The bounce we’ve been discussing over the last few weeks has slowly taken shape, although with the US raising interest rates over night there is now scope that we’ll start heading lower for a week or so before completing that bounce. Our bullish divergence, the cornerstone for the bounce, has now fully unwound. In an ideal situation we should weaken for a brief period, bounce again through this weeks highs and then start the major leg lower to the mid-year target levels. The raising of interest rates is of concern. Stopping inflation is one thing, but undermining delicate confidence is something different altogether and I would assume that now is not the time to be taking that route. We’ll certainly see how the US takes it tonight, but as at writing the night trading shows the Dow Jones futures -100pts.
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