Weekend Charting and Chat - 9th June 2017, page-4

Below is a weekly chart of the ASX 200.

The ASX 200 closed the week on support, for its lowest weekly close since late-January, and appears likely to fall further from here. Weekly momentum remains bullish decreasing at its fastest rate since the down-turn commenced last month. A close below the 5570 - 5610 S/R area may coincide with overbought conditions on the Stochastic, which would indicate the potential start of "Bear Market" conditions, with further PA left to confirm. Hopefully not another false signal like during early-4Q16, before the US election result shocked markets and the reversals ensued, with some much larger than others..

The MACD formed a bearish down-cross a couple weeks ago with an increasing negative histogram, which has accelerated since. Awaiting bearish confirmation signals either from the Stochastic displaying overbought conditions (<80) or if a price breakdown occurs with conviction. Note that the two previous MACD down-cross's have been false signals. The Stochastic formed a bearish lower-high a couple weeks ago, within the bullish continuation region. Continuing its bearish descent to overbought conditions (<80). TL support remains the last line of defence until the 80.0 - 82.0 S/R area.