Really Fat Pizza, page-770

The momentum from last Friday's recovery was short lived.
The Corona Virus concerns around the world increased over the weekend, which caused the US Federal Reserve to hold an emergency meeting where they slashed interest rates to effectively zero, and began a new quantitative easing program (again).
This move was designed to support the US economy, but only served to spook world markets which dived in response.

The ASX sliced lower on Monday, closing at its lowest level since this Corona Virus induced pullback began.
Price did not close below Fridays (broad) range, which was a minor positive.
Volume reduced a little from late last week, but was still quite high overall, and was very high for a Monday.
Spread was roughly equal to volume, so no obvious anomaly can be seen to suggest any underlying support is being drawn out.
Previous (old) support at this level is down to ~@4850 , with only some modest support below that around ~4700 to ~4750  (and if that level gets hit, it's probably unlikely to be strong enough to hold).
So if price continues lower (which is a fair chance), there are no really strong previous support levels immediately below 4850.
There is however a strong previous support zone which dates back to mid/late 2011, and lies between ~4000 and ~4350
(its hard to believe we were at all time record highs less than a month ago).


cheers

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