The All ordinaries index is bouncing back, reader. Where could this move go?
After the 19.5% fall started in May 19, the Index posted a low on July 16 at 4880 points.
The All Ordinaries index has already rebounded by 5.7% since mid-July. The two-month fall between May and July was so sharp that a rebound had to happen eventually.
If you take the two extreme points of this fall (points A and B on the chart), the price closed yesterday at 5,160 points which is right on the 23.6% Fibonacci retracement level.
