Sunset Strip | Aussie Afternoon Institutional Market Wrap

Aussie market delivered a negative day while being caught between volatile US markets, falling commodity prices, RBA rate cut cycle and institutional investors taking risk off before school holidays. For the past 5 days in a row, our market switched direction. US market hovers around the technical support level with fear and greed index moving further down the fear zone. Turnover levels moving around, short covering, stretched multiples, low volatility, rising bond yields were sending warning signs at the start of last week. We got few days of big moves down that broke the recent uptrend. Domestic institutional investors will be looking to reduce risk before RBA meeting next week and before going on school holidays with their family. Keep in mind that US is only 3 day weekend while we have a 4 day weekend. The overall negative domestic market trend likely to remain through this week before retail investors take over the market next week post RBA decision.