The ASX retreated from a 21-month peak as investors locked in gains from a two-week rally following a mixed close in the US overnight.
At 1pm EST the ASX 200 was 13 points or 0.2% weaker at 5804 but remained on track for a second straight winning week as solid advances on Monday and Wednesday outweighed softer sessions on Tuesday, yesterday and today. Gains this morning in the gold sector +1.9%, IT +1.2% and utilities +0.3% were dwarfed by declines in health -1.6%, materials -0.9% and energy -0.5%.
Overnight, the Dow scraped a sixth straight advance with a rise of 0.04%, but the S&P 500 slipped 0.09% and the Nasdaq 0.08% amid technical indications that global share markets are overbought.
"Our market is now higher seven out of eight trading days and testing resistance at 5830 this may the point of inflection for traders as the resistance of 6000 points is tantalisingly close," IG analyst Gary Burton told Fairfax. "Continued upbeat reporting may just allow the market to retest that level in the near future."
China's Shanghai Composite edged up 0.11%, Hong Kong's Hang Seng dipped 0.06% and Japan's Nikkei shed 0.59%. Dow futures were recently of four points or 0.02%.
Crude oil futures rallied 11 cents or 0.21% this morning to US$53.47 a barrel. Gold futures eased $2.80 or 0.23% to US$1,238.80 an ounce. The dollar was buying 77.04 US cents.
Trading: been a remarkably straightforward, stress-free week with clear, low-risk opportunities each day. Two I nailed today were MRP and PDN. Long may these conditions continue. It's been a good week, so I'm about to pack up and head to the coast to get royally pished. See you Monday. Carry on my wayward sons (and daughters).
