Where I See The Markets

After 43 trading days of “treading water” between 5740 and 5997, a decent move from the ASX200 is clearly overdue. For March/April combined, the average return for banks is +5.7%. However, currently we are only up 1.7%. Tops are generally the hardest inflexion-points in a market to identify and this may be no exception. I remain positive equities for April, targeting a break towards 6100. I believe this will represent an excellent selling opportunity. I will maintain this view unless the ASX200 closes below 5890 where I will become neutral/negative. The REITs chart remains bullish to me. I can see another +5% in coming weeks from the Index. The US Indices are following my technical view so closely it’s scary, but until they break my forecast I see no reason to change. Last night the NYSE Index traded to an all-time high, ideally it should now push up over the coming few weeks. I am looking for a “blow off” top in US Indices over coming weeks, prior to a substantial ~20% correction, a year of great opportunity! (VIEW LINK)