Last week the market kept within the same bands that it has kept within for the last 10 weeks. Yesterday, the market dipped but still kept above the 4710 aupport level. Well, with the failure of Lehrman Brothers, the US market dipped over 4% last night and the overnight futures that our market will at least open below the support. The close is the key number and if the ASX 100 close ends up above 4710, then I think that there could be some confidence that the floor will hold, otherwise the next support is around 4200 and I doubt that the market will slow much on it's way to 4200.
I have more confidence that 4200 will be the limit of the current move (the PE of the market is under 12 at the moment). However, I wouldn't laydown any capital until we see some recovery, and then only short term.
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