- ASX 200 Inde extend rally towards a 61.8% Fibonacci retracement at 6134.
- The financial sector was 2.94 per cent higher.
- The property sector had gained 2.38 per cent in the early session.
Shares on the Australian market have climbed to fresh highs on Thursday, with the ASX 200 trading around 1.13% at the time of writing, just off the highs for the day of 6,040. We have seen a range of between 5,941.60 and 6,040.20 so far in yet another bullish day of trade, taking its lead from Wall Street.
Markets are cheering the continuous optimism in relation to economic recoveries in a post-COVID-19 lockdown in most developed nations. It had been a really interesting day for US data with some clear positive surprises.
The ADP private payrolls series showed far fewer net job losses than anticipated – just 2.76 million in May versus the consensus expectation of a 9 million monthly decline in employment. US mortgage approvals data was also impressive which showed the seventh consecutive increase in applications for home purchases.
A V-shaped recovery is looking more likely and equities markets may have proven the pessimists wrong.
Meanwhile, as for performers in the index, the financial sector was 2.94 per cent higher in Aussie shares in the opening part of the session, ahead of the next-best sector, property, which gained 2.38 per cent. The big four banks were each more than 3.0 per cent higher.
Aussie data dump
Australia’s data dump continued to write the same narrative of cautious optimism with a higher surplus than expected and a lower negative in the Retail Sales data. More on this here: Aussie data dump positive for AUD: Retail sales -17.7% MoM vs -17.9%, Trade.Balance a surplus
ASX 200 Index levels
The bulls are pressing on towards a 61.8% Fibonacci retracement of 6134 and now have a 50% mean reversion as a support stricture to lean on at 580, 9th March structure.
MACD is bullish on both the daily and 4HR time scales. a 38.2% pullback comes in at 5912 on expectations of a continuation to the upside.
Failures below the prior resistance structure, bears can seek a run back to the previous resistance around 5500.
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