Another tentative Monday on top of China issues?AGE gained 1 pip...

Another tentative Monday on top of China issues?

AGE gained 1 pip to finish at 4.4c. Our volume was average, just over 10m shares traded. Good to finish in the green but still not out of woods, have to get to 4.6 to get into next trading range, hopefully if market behaves

ASX U stocks declined along with most resource stocks. Of the 25 stocks that I track, average decline was 1%. U Future price sitting at $50.35

What next:

Will keep it short as covered some in Weekend Report.

The decline in resource stocks which started couple of weeks back continued today. The situation in China not helping the cause.

SP 500 is reaching a very critical level - the test of 200 day moving average from which we have failed multiple times this year. Lot of analysts feel that it may happen again. But there are some who believe we may cross this level around 4060 and get to next around 4150/4230. Crossing this may signify a bull run, else will be classified as another bear market rally. On decline, we need to hold 4000 and 3900 if we go there, else we may have a bigger fall.

So what will happen tonight? Unpredictable but China situation has given a fodder for red. Futures are already red. I still feel the technical battle between bulls and bears at key resistance levels will be the main driver rather than China. There is a chance from technical perspective that we should go another 2 to 3% before a final showdown (unless we get shot by 200 day moving average). Will that happen? Lets hope so. All the best.