Xjo (Asx20 Proxy) Aggregate Value Composite Index
I haven't posted any updates for some time.
I've beefed up my analysis system and now have integrated it with a new ASX20 XJO composite.
The update shows that the market appears to be well supported by value at current prices.
Sentiment indicators suggest that there has been too much bearishness lately, for obvious reasons with the Euro debt crisis in the spotlight, however unless company earnings deteriorate dramatically from here, there is some value to be had in the market.
Clearly anything can happen in the short term, but I still don't see a potential for a market crash based on the information at hand. This analysis suggests to me that the likelihood is for the market to maintain current levels, with volatile swings in the short-term.
Markets can turn on a dime. When the crowd gets excited about a stock run not walk.
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