The ASX's consolidation pattern since mid-Q2 continues to drag on..

The ASX 200's consolidation pattern since mid-Q2 continues to drag on with increasingly bearish weekly momentum, however fading. Need to see a break below the 23.6 Fib retracement with conviction, and a weekly close below recent lows at 5630 for bearish confirmation.

Still confident this will occur - with European markets increasingly bearish and US markets starting to roll-over.

The MACD formed a bearish down-cross during mid-Q2 with an expanding negative histogram. However the negative histogram has since started to contract over the past few weeks indicating distribution is fading. Expecting further falls from here. The Stochastic has been forming bearish lower-high's since mid-Q2, becoming overbought during late-Q2. Currently at its lowest level (52.9) descending since early-3Q15, just prior to the start of the 2H15 bear market. Remains bearish.

#ausbiz #ASX200 #ASX