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The big issue today is whether the Australia 200 can close above the October high of 5457. A close above here will bring out a fresh wave of momentum traders. I am cognisant however that the market is overbought at current levels and a pullback would be fairly healthy, especially if it were to materialise on low volumes.
From a fundamental perspective I am fairly neutral on the index on its current valuation, however from technical standpoint there is a strong trend and dips look like buying opportunities.