ASX 200 Analysis Week Starting 26 Sept 2016

So far it seems that the low is in. We have two reasons to believe that the market had a low on the 14th Sept at 5192. These are:

• The index had a huge up move since (242 points in nine days), overtaking 50% of the down move from the high at 5611 to the low at 5192.
• The index went up beyond the low at 5361 level on the 2nd of Sept.

After Friday’s close it could look like a lower double top but this it needs to be proved by the market in the next few days. However the index looks exhausted and needs a  pull back, moreover after S&P index falling 12 points on Friday.

So the support levels could be between 5392 (72 MA) and 5400 (the 50% retrenchment ) then maybe the  5361 level which is the low from the 2nd Sept.