Post-Christmas sell-off sets ASX back

By Tim Michaelides | Recorded 5:00pm, 17 January 2018

The Australian market has removed most of the Christmas gains as profit taking moves the market back to the key 6000 level. Most major world markets have remained fairly strong over the last week with strong economic reporting a good start to the US company reporting.  

The US markets reopened overnight after a public holiday in strong highs following strong leads from the futures market but completed pulled back to close slightly in the red. This was a strong reversal which sent the VIX implied volatility index soaring. The S&P500 is back to the uptrend and with futures up at this stage the trend is likely to hold on their open tonight. 
Our market extended the sell off today to finish close to the 6000 support level. A combination of a small pull back in Oil and Commodities sent the energy sector lower. The Big 4 Banks also surprised many and also sold off lower. The AUDUSD is trading back close to 0.80c is likely the other reason we are seeing our market disconnect to the positive sentiment offshore. 
It is common to see a pull back this time of year after the Christmas rally. With strong support close by, chances are this move down will lose momentum and we could see some sideways before the a rebound into our reporting season mid-February.  
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