Day trading ASX 200 – Outlook for today 23rd September 2014

Yes, the Aussie market is very weak. Had only a day counter trend (couldn’t make more than one day as could from yesterday analysis) and found a new low today. Even the close 5363 is below the very long range it had between 5373 and 5554. This puts it in a very bearish position even if:

1. It has five waves down from the high.

2. It’s oversold.

So, don’t catch the “falling knife” as they say.

The next support for ASX 200 index is at around 5327 (38.2% Fibonacci extension), but more reliable support would be at 5291-5300, which comes from form reading as well as a 50% Fib extension.