ASX 200 Index: Bears taking back control as bulls disappear over horizon
- A downbeat day on Wall Street plays in the bear's hands in Australia's share market.
- The ASX 200 Index was lower by 38.7 points or 0.65 per cent.
Shares in Australia have fallen on Tuesday following a downbeat day on Wall Street and mid a sell-off in technology shares and dire coronavirus data from around the world.
The ASX 200 Index was lower by 38.7 points, or 0.65 per cent, at 5938.8 points after 30 minutes of trade on Tuesday and us currently consolidating at the same levels at the time of writing.
The All Ordinaries index was 42.7 points, or 0.7 per cent lower, at 6046.6, also consolidating as markets settle on the offer for now.
The worst of the market fell in the hands of the information technology sector 's bears.
The sector recorded the biggest fall, down 2.61 per cent, on the tails coats of the NASDAQ's closing performance after making a record high earlier in the day.
Meanwhile, banks are in focus today with US earnings on the slate.
More on that here:
Locally, ANZ edged lower by 0.21 per cent to $18.60.
The Commonwealth gained 0.12 per cent to $72.21.
NAB slipped 0.44 per cent to $18.09.
Westpac shares were down 0.06 per cent to $17.96.
As for industrials and energy, the commodities market was seeing a mixed bias on Monday.
"Rising COVID-19 cases remain a key drag, especially for the energy sector. Renewed lockdowns in some of the cities across the world can hinder the demand recovery," analysts at AZ Bank explained.
Energy opened lower, but managed to its claw back losses later. Industrial metals continued to enjoy the supply disruptions driven rally. Bulks traded higher amid stronger industrial activity in China.
This lead to heavy falls in Industrials and energy, down 1.17 and 1.14 per cent respectively as oil prices slipped overnight. Rio was the best of the big miners early doors.
Meanwhile, coronavirus lockdowns are biting into market sentiment.
There was a decision by the California Governor to scale back the state's reopening, shutting bars and banning indoor restaurant dining statewide and closing churches, gyms and hair salons.
In Australia, there are 270 new cases reported today.
The Guardian reports that the total number of coronavirus cases reported in Victoria now stands at 4,224, premier Daniel Andrews says.
Another factor weighing on sentiment is the White House's decision to reject nearly all Chinese claims in the South China Sea.
China embassy in US: US is stirring up tension, inciting confrontation in S.China Sea
ASX 200 Index levels
From a daily perspective, the price is testing the 61.8% Fibo of the prior impulse and bulls will be looking for an entry of 6020 on a retest above and back to the level presuming the next bullish impulse.
Failing that, bears will be looking for a break of market structure at the said 61.8% Fibo which is located at 5898. The price is below the 4HR 21 moving average and MACD is bearish. 5946 could be resistance at this juncture.
Author
Ross J Burland
FXStreet
Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.
