A very strong trend day today, meaning the market opened on its highs, traded heavily lower before closing on its lows. Last weeks lows are now being tested and we do have some Type-A Bullish Divergence developing. That said the US markets are teetering on a ledge of support and if broken we may start seeing a deeper correction unfold. Obviously with Australia being a laggard the chances are that we’ll suffer more so, afterall we do have numerous headwinds already. What we don’t need is signs of a weakening US economy. If the US fails to hold support then we must be prepared to see prices test the March lows circa 4550.

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1. Wednesday June 1st, 2011