The Australian market has been trying to resist what is happening in the US, but unless the Australian market totally ignores Wall Street from overnight, I think the next stop is 4200.
Will 4200 be the bottom? It is an interesting question as we will probably hit it over the next week or so. The market always looks forward and the media is talking about the end of the world so the market is factoring in not just the failure of Lehman brothers and the AIG teetering on the brink but all of the other investment houses going belly up. So a case could be made that the bottom is nigh.