The ASX (Australian Stock Exchange Limited) was formed in 1987, is the largest exchange in Australia and is one of the top exchanges in the world with a market capitalization of about 1.2 trillion US dollars. Some of the companies traded on the ASX include, Qantas Airways, Rio Tinto and the Westfield Corporation.
The S&P/ASX 200 is an index that benchmark’s the ASX. It is based on the 200 largest ASX listed stocks, but Standard and Poors usually balance the index every quarter
The big four banks, the major miners and the energy sector have all dragged Australian shares lower, with $18 billion wiped off the local bourse as it mirrors a global markets slump.
The benchmark S&P/ASX200 index was down 65.2 points, or 1.05 per cent, to 6,130.0 points at 1030 AEDT this morning, while the broader All Ordinaries was down 66.1 points, or 1.05 per cent, at 6,214.8.
The dip resulted in $18 billion erased, headed by miners and large banks.
The fall comes after London’s FTSE, Germany’s DAX and the three US indices all dropped at least 1.5 per cent on Friday following weaker-than-expected manufacturing and services data.
So where is the ASX 200 headed next, lets go to the charts to find out?
Monthly Chart (Curve Timeframe) – monthly supply is at 6650 and monthly demand is at 4900.
Weekly Chart (Trend Timeframe) – the trend is sideways.
Daily Chart (Entry) – no trade set-ups at the moment. The chart suggest to wait for price potentially move higher to the monthly supply before considering a short.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.