After two days of holding it together somewhat, our market succumbed to selling pressure today, posting a 2% decline. US futures trading down more than 1% at the time of writing during the night session have not helped the cause, as our market prices in further declines in the US tonight after the major indices closed down 0.5% or less overnight. We are now approaching levels to watch as mentioned in Peter’s XJO analysis last Friday – see ASX Chart Research for his full analysis. Daily and weekly trends are down and systems are off in terms of new buy signals but continue to take defensive action – the ASX Systematic Portfolio in particular is undertaking that role in rapid fashion. From a discretionary trade perspective, the market is oversold on a short term basis so we would look for a bounce to initiate shorts unless we see buyers enter the market with some conviction.

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