There is not much upside pressure in the top 20. This is the chart that typifies the outlook for most:
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BlueScope Steel (BSL:ASX): Daily Line Chart
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Click to Enlarge
One could be forgiven for thinking the market is defying gravity and heading higher, but the truth is markets have run out of steam.
Take a look at the XJO:
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S&P ASX 200 (XJO:ASX): Daily Line Chart
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Click to Enlarge
It is finding resistance at the 5400/5500 range. It could make another attempt early this week with the US markets having a good Friday last close.
But I doubt that in itself will be enough to create a sustained surge.
Having had a strong run since mid-March there is no compelling news to cause a strong move higher from here.
But it is a time to maintain a close watch especially if you believe in this move higher being merely a relief rally.
Enjoy the ride
Tom Scollon
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