As discussed in April, the markets have lost quite a bit from their April Highs – on average 8% and the Australian mining sector is actually testing the 2008 lows (!!)
So where are we at now?
Apart a Black Swan, we are close to the bottom. The negative forces are still there, but we could start to see a bottoming process.
The ASX has a clear support at 5,200/5,100.
SP500 US is currently testing the strong support 2,070/2,080 – but it has quite a lot of support around this numbers…2,040 and 1,980
Europe (not UK) is weak as a consequence of the continuous Greek stalemate.
China let off a bit of steam …but has the characteristic of a blow off market (the issue is that China is completely manipulated by the Government who needs a “good market” in light of the IMF meeting in October)
Japan has a bit of weakness.
Volatility is within range.
So we are still in a weak moment, but aside surprises – all within parameters.
The potential surprises to watch out for naturally are the bond market and Greece.
investorpolitico 