All Ordinaries Index :
The Australian Sharemarket lost over $40 billion in value in trading today after lower than expected earnings from the banking and consumer staples sectors. The past three months has seen the All Ords Index trading in a sideways pattern between resistance of 5,960 points and support of around 5,740. The index attempted to breakout from the psychological 6000 level on four occasions without success.
Today’s trading saw a very bearish candle which closed below the support level of 5,720. The bears are in control and continued selling in the short term is likely to push the index further down towards the next support of 5,670 based on August/September resistance. A drop below this level does not see support till 5,520.