A quick look at today: ASX dropped 103.5 points early on and stayed at 6,965.5.
Investor risk appetite was subdued as stocks were sold off in favour of perceivably safer alternatives such as government bonds. Inversely correlated to prices, yields on one year US government debt fell to 4.3%.
The MACD is significantly below its signal line which suggests that the existing bearish sentiment is beginning to swing around toward a more bullish outlook. The Relative Strength Index has gone below 30, going into oversold conditions and allowing more gains. ASX's lower Bollinger Band® is at 7,073, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains. After reaching the 6,951.7 support zone, ASX bounced and climbed 13.8 points above it.
Overall, looking at the technical analysis landscape, it seems ASX —which is currently on a downtrend— might reverse course and start pointing upward in the short term.
In the meantime, negative performances are also seen in other markets, Hang Seng slumps 1.72% today and closed at 19,540.
Other assets are showing positive performances as CAC improves 1.19% today and closed at 6,885.71. EuroSTOXX is trading around 4,076.48 after ending today's session at 4,035 (up 1.03% today).
Furthermore, Australia CFTC AUD speculative net positions will be released tomorrow at 20:30 UTC.
The index has been trending lower for about a month. 8 months ago, ASX fell to a low of 6,434.7 but has since recovered 9.86%.