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The technicals are lining up behind the ASX, supporting a move higher after last week’s strong performance. The ASX managed its first close above 5400 since 12 August on Friday, a hugely significant psychological level for the market. Market internals indicators are showing that the move has been widely supported by a range of companies, showing that there is significant market breadth behind the move. While valuations are looking stretched, the technicals are pointing higher in a week that will be buffeted by the release of a range of economic data.