ASX 200 for 10th to 17th Jan 2016
If I was to put a message for you last week when the chart of ASx 200 looked like this:
I would have said that the index is due for a correction. That was because the index has been in a range since August 2015 from 4910 to 5370 and the fast move up in December was in low volume (normal for the end of the year). The correction target would have been 4910 (the low of the range).
This correction target would probably will be reached today after the fall in US market on Friday.
Looking in a bigger picture (monthly chart)
we can see that the index is flirting with the trend line and is at 50% Fib retrenchment of the huge GFC fall. This is an important support but it could be broken having the fast move down the index had last week. At the moment the index should find support here for few days then if it breaks the next support levels should be 4825-4850, 4660-4675 and 38% Fib at around 4550.