Is it time for a shake out on major Indexes or a major correction lower!!
The ASX200; along with many other markets; has bounced harder than expected off lows the previous months….but is today the start of a shake out of bulls or another major leg down?!
The ASX200 has been in a controlled move up since the end of July and today saw the market push out the bottom of the rising channel (shown on the Daily Chart below). The price action may get heavier but I feel it is too early to start saying ‘the sky is falling’! I feel that we may simply need to shake out some late and nervous bulls and may flush down to 6764. Of course, I am not looking to load the boat into shares down at that level, but will be watching the subsequent price action for clues of either a bounce back up or a bigger move down.
We have to remember to wait for confirmation before making decisions and at this stage, one down day does not make for a selloff!!….all we can do is analyse the action and plan ahead for the major risks.
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ASX200 Daily Chart 22/08/22
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