The Market Wrap Friday 30th October 2009

By Jason Fittler

The bounce.

It was a good week last week.  We finally saw a pull back in the market, as it dropped from 4800 to 4600. The key point was the bounce at 4600. The next key will be to see how it travels over this week. If the recovery back to 4800 is slower than the drop, I will be expecting to see the market fall further.

Earning season in the US is over, with a mixed bag of results. What we do know is that the Aussie dollar is still looking high, or is the US dollar low? Also retail sales in the US have not picked up as quickly as Australia.

The take away from the past week is that we’ve had a clear signal that this Bear market rally may have found a top. This will now provide an opportunity to get any spare cash you have into the market. My advice is take it steady, look for the opportunities and buy on weakness.

We are almost back to business as usual.