ASX200 is currently correcting to its local support off the back of an overextended bullish move and collapsing stochastics.
The most probable event is we see price retest local support, before a pause for consolidation and then a break lower towards major support.
We expect major support to hold for long entry, provided the world macro environment stays stable, although we are cautious of slowing international growth.
The less likely event is we see equities bounce off local support and test for new highs. We see it as less likely given a slowing macroeconomic environment.
The most probable event is we see price retest local support, before a pause for consolidation and then a break lower towards major support.
We expect major support to hold for long entry, provided the world macro environment stays stable, although we are cautious of slowing international growth.
The less likely event is we see equities bounce off local support and test for new highs. We see it as less likely given a slowing macroeconomic environment.