In my last news letter I call two resistance points. First one at 5400 which the market has since moved below. And the second at 5100 where it pulled up.
I also advised to accumulate at 5400 but save some cash in case it moves lower. Which is exactly what it has done.
At the current level I am still a buyer in the market as many companies are looking cheap.
So far the market has held up above the 5100 level and time will tell us if this is the bottom.
Looking at the below chart it seems that the long-term up trend is still in place. And the latest pull back was another in the series since the GFC bottomed.
US interest rates are set to increase. In Australia we can expect the same in march next year.
But the issue right now is China and Europe. Both of these economies are slowing and the investor community do not know what to make of it. So they pull their money out and watch.
For value investors it is time to sniff out the bargains.
Take the long-term view and wait out this short-term fluctuation in the market.
The economies across the world are in poor shape, this is not new news but it gives the media something to blah on about.