The market momentum continues and the ASPI is heading towards 5,630 its channel resistance which indicated in the chart below. Once broken the market has the potential to head towards 6,000
There is not one gloomy face to be seen on the trading floor but traders are being very cautiously optimistic about any rally. This is another positive sign as investors seem to be managing their risks. We are seeing continuous interest in Hi and Low cap stocks and we expect this trend to now continue for the near future.
On a cautious note though since the index has been up several days in a row we could see some profit taking. This would be an opportunity to capitalize and bargain hunt.
Vone vs. ASPI
The below chart highlights the almost perfect correlation between VONE and the ASPI. A VONE at 23 = 6,000 on the index.