Does domestic conditions (favourable or unfavourable) dictate our ASX as much as what the future (near term and forward) holds for the of US market ?
Almost invariably the latter, I would even say that ASX is more concern about local bad news than local good news e,g renewed covid cases or China boycotts more so than better local economic data.
This IMO makes XJO particularly vulnerable after the strong blue chip rally , am expecting it to possibly retrace at least another 2pc to 7090. If it falls from there, then 7000 is not far off especially if iron ore prices falls further.
My caution yesterday on ASX financials proved to be spot on as banks have been the major decliners today and still has more room to catch up in its retracement to better align with the correction that has already took hold in US financials.
