Sunset Strip (Afternoon Report) - Aussie market took another beating following US stocks going code red

Sunset Strip (Afternoon Report) - Aussie market took another beating following US stocks going code red. We turned negative today after US overnight selloff at technical support levels, AUDUSD at the peak level we expected, Aussie market struggling to break past our short term target for S&P 300 of 5400-5500, Aussie VIX at historical low levels, Aussie fund managers on school holidays for the next 2 weeks, spot gold rising over the past week, optimism on central bank support in the price, financial sector upgrades in the price, sell in May trend getting airplay and Aussie market growth outlook not justifying current valuation level. We expected today to be subdued, but with momentum turning again, we see the down side risk to fair value higher than limited upside in the short term. (VIEW LINK)