Valuations in the market today are no where near those of the...

Valuations in the market today are no where near those of the tech crash not even close, a fall like we had can be quite healthy and needed for markets to keep rising.

There is no reason why the Australian market can not at least test the previous high at 4255. Even though valuations are not that high, I feel that the market has run to fast to quick and it may struggle to move past the previous high for now.

We may just consolidate and slowly push up to the resent high then have another tumble, the world market have so much uncertainty and even though valuation are not stretched it may just be enough to stop it from continuing up for some time.

Simple way to trade is buy on the falls like we just had and sell on the rallies especially when we approach major resistance and that would be 4255, the market in the shorter term for now is bearish rather than bullish and should be treated as such, this is how one should trade until we get a turn around, unless you are a long term investor where you buy good blue chip companies that have been beaten down.