I do believe that what we're seeing here is profit taking, which is a means of insurance that you need to take when the market has run very hard into a profit season that's got very high expectations about it,
We are seeing a carry-over of Friday's trend and that's probably encouraged by a similar sort of direction in the U.S. on Friday evening.
I think people are looking to the end of June as a period where probably not much is going to happen domestically, and if anything we will just see prices drift.
It's been a situation where North's been talked about for quite a while and it could be a catalyst for ongoing momentum in that area.
The big falls are across the resources sector which is a bit of a wake up call for the market: that this part of the market is very susceptible to increased volatility at the moment.
It's taking into consideration the Rio bid for North, and what benefits lie for other stocks in those related sectors, that's why we're seeing an improvement in BHP and other resource based stocks.
Investors have been looking to exit the miners and stick their cash somewhere else for a while.
A lot of money is very sensitive to interest rate changes but also a lot of money has been put into the high growth technology sector, and the returns are not going to come to fruition in all investments.
The bank sector is a bit weaker here, with NAB and CBA coming of their highs, and of course Westpac are ex-dividend, so that has obviously had an effect on the index,
I think it is a rebound from yesterday. The moves in markets overseas, particularly the U.S., just assisted with some renewed confidence first thing this morning.
