A quick look at today: after ending yesterday at 7,197.4, ASX went up to 7,201.7 only to drop back to its starting point and close at 7,193.
Bond sell-off and inverted yield curve raises the spectre of economic recession in the US; after trading around 4.7%, the yield on one month US government debt rose to 5.76%.
Uncertainty around ASX is reflected by published market data as Australia Home Loans (MoM) released today at 01:30 UTC with a figure of 6.5, while the previous figure was -1.2. Australia Trade Balance (Mar) came out at 15.27 billion, while a consensus of analysts was expecting 12.65 billion.
ASX 200 is approaching key support, around 38.47 points away from 7,154.63. Dipping below could indicate further losses are ahead while a failure to break below this level is likely to be seen positively by market bulls. ASX made an initial breakout above its 3 day Simple Moving Average at 7,220, a potential indicator of a newly emerging bullish phase. ASX's upper Bollinger Band® is at 7,433 and the lower is 7,199.68.
Although price action remains in a stalemate, technical analysis suggests ASX could be primed for a break to the upside.
While ASX was pretty flat today, mixed performances were seen elsewhere as FTSE withdraws 1.1% today and closed at 7,788.37. Dow Jones lost 0.86% today and closed at 33,400. Hang Seng increases 1.27% today and closed at 19,700.
Data to be released Monday might clear up some of the market fog as Australia CFTC AUD speculative net positions is expected today at 20:30 UTC.
Trading mostly sideways for a month. ASX is now trading 4.85% below its 3-month high of 7,558.