Despite a poor lead from the US (the Dow was +100pts in early trade before dropping 200pts with a slight recovery into the close) the ASX got off to a good start. However, early gains could not be held and we closed the week on a flat note. The Type-A bearish divergence has managed to stamp its foot on recent strength, but the good news is that it’s almost unwound completely. This doesn’t say prices can’t go lower, but from a pure technical perspective it does suggest the pattern has now lost it’s immediate potency. We’ll see what happens in the coming week but I expect further pause. Some of our shorter tern momentum positions have been closed but we’ll pick these up again should the market decides to kick again. I retain my solid footing in mid-cap resources.