1. The markets took on a bearish tone this week.
2. The medium term chart (XAO Weekly) is weak.
3. Short term (XAO daily) the market is oversold and may bounce.
4. Overseas charts (Dow, SPX, Copper, Shanghai) are all looking negative.
5. Ben Bernanke’s QE2 program will probably sustain the American market in the long term.
6. The "Gerry Harvey Event" is indicative of a serious underlying problem in the Australian economy.
7. It seems to me that any Reserve Bank rises for 2011 are now on the back burner. (With floods in Queensland, New South Wales and Western Australia hitting the Agricultural and Pastoral sectors, interest rate rises seem even more remote.) But the RB doesn’t ask for my opinion. :)
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