Now it’s possible that I’m wrong, but I’ve been noticing a subtle shift in our markets. Obviously I focus on our tiny little Australian market (ASX) for the majority of my trading, but I also keep a pretty close eye on our American friends and what their market is doing because I like to have a reasonably broad outlook.
Historically, it’s been common knowledge that our Aussie market follows the US. It makes sense, what with us being a tiny economy and the US being a mega-super-power and all that.
But I’m noticing a shift. Our market seems to be preempting the US more often, and not following as closely to the goings-on over there.
I’ve posted a couple of charts below, sorry they aren’t very clear but if you click them you can have a closer look. You’ll notice our market recently dumped through its support line a day earlier than the US market, as well as forming the subsequent bottoms and tops ahead of the US.
Bear in mind that we are a day ahead of the US here, so basically we have had our 8th of September, and they are only just starting theirs.
You know, maybe it means nothing. But maybe it means follow the leader isn’t the right game to play anymore. Or, dare I say it – perhaps the leader has changed.