EOFY Charting and Chat - 30th June 2017, page-25

Below is a weekly chart of the ASX 200.

The ASX 200 closed the week again in the 5705 - 5725 S/R area, after earlier reaching 5820. Weekly momentum turned further down during the week, changing from bullish decreasing to increasingly bearish, and the index appears likely to fall over the next few weeks. The probability of further heavy falls and a "Bear Market" ensuing over the next several weeks to several months is high..

The MACD formed a bearish down-cross during mid-Q2 since with an increasing negative histogram. This bearish signal was confirmed during the week when the Stochastic entered overbought conditions by down-crossing the 80.0 line. This is a very bearish signal. The Stochastic has formed bearish lower-high's since mid-Q2 within the bullish continuation region, and this week continued its bearish descent to overbought conditions (<80). This is a very bearish signal when combined with the MACD down-cross with an increasing negative histogram. Expecting further falls from here.