Australian housing prices are falling.
Fueled by declining credit growth.
With falling contribution to GDP growth from dwelling investment, and mining investment shrinking….
GDP growth is expected to weaken further.
The gravestone candlestick on the ASX 200 weekly chart warns of selling pressure. The primary trend is down and the index unlikely to break through resistance at 6300. Expect a correction to test support at 5650; breach would warn of another decline.
I remain cautious on Australian stocks and hold more than 40% in cash and fixed interest in the Australian Growth portfolio.
