ASX 200 Forecast Today 23/9: Pulls Back Erases Gains (Video)
Date
9/23/2024 3:00:09 PM
(MENAFN- Daily Forex)
The Australian stock exchange 200 has pulled back a bit during the trading session on Friday, wiping out most of the gains from Thursday, suggesting that maybe not everything is quite as rosy as it looked. Nonetheless, we do have a significant amount of support just below the 8100 level, and I think it makes quite a bit of sense that there's probably some value hunters willing to get in and start buying in that general vicinity. The ASX 200 really took off after the federal Reserve cut interest rates by 50 basis points, but that seems to have completely disappeared.
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Keep in mind that sometimes when the Federal Reserve cuts interest rates a little aggressively, you see an initially positive move followed by a very negative one because the last couple of times the Federal Reserve has cut interest rates by 50 basis points were the technology bubble bursting and the Great Financial Crisis.
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I'm not saying that we are there yet, but there are enough people out there worried about it that it does make a certain amount of sense that smaller, more commodities driven indices such as the ASX 200 might not be the first place people want to put money to work. The technical analysis is good for it, but it just looks like the short term charts aren't as convincing as they were just 24 hours ago.
The $8,100 Australian dollars level, of course, is important, but even more important is the $8,000 Australian dollars level, which is currently backed up by the 50-day EMA. So, with that being said, a little bit of a fallback probably makes a whole lot of sense. I don't want to short this market. I just don't want to jump in and start buying hand over fist, as obviously there's a little indecision heading into the weekend.
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