17 August 2009 – Near term high in place

ASX Commentary

17 August 2009 – Near term high in place

Tue, Aug 18, 2009

The Type-A Bearish Divergence we’ve been discussing kicked in with some force last night. The indices tanked 2% on the open but then traded flat for the rest of the session. This is the pause we’ve been waiting for, but we want it to trace out for a few days at least, if not a week or so. The pattern off the March lows seems to have completed a 5-wave structure so it could well be that we’ve made a decent high point for the near term. I’m wary of any long positions now and will be taking more aggressive defensive action. Its too early in my view to look for short setups though.

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Nick Radge - who has written 899 posts on The Chartist.

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