The weekly ASX 200 is resting on the combined support of the 15 MA and the 5,300 level. The MACD is crossed down, the RSI has turned down but is still above 50. The slow stochastic is still crossed up but I would expect it will cross down in the week ahead. I don't think that support will hold.
With the U.S. NFP jobs number a large miss, it looks like there will not be any reduction of QE for a while and as I have been saying all along I expect there to be an increase in QE above what it was at $85 Billion per mth. The market was panicking about the end of QE for months because QE is bullish for stocks. When it actually happened and 10 billion per mth was reduced off QE, it was seen as bullish, bearish after all. Supposedly because the "economic recovery" was real this time. If there is no further cuts to the QE program, that has to be bearish for stocks now, right?
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