A quick look at yesterday: after closing at 7,138.2 the day before, ASX maintained a strong bullish bias that helped the index close higher at 7,154.8 yesterday. However, market bears ensured the ASX topped out at 7,156 and that by the end of the session, the market had marked out a distinct 7,129 to 7,156 range.

On the flip side, Retail Sales in Australia fell short of market expectations (0.3%) with a reading of 0%, continuing the decline from the previous figure of 0.4%.

Meanwhile, Australia CFTC AUD speculative net positions released yesterday at 20:30 UTC with a figure of -49,100, while the previous figure was -53,600.

Chart analysis suggests ASX 200 is 7.13 points away from testing key resistance at 7,162. Peaking above this level could inspire market bulls and open the path to further gains. Trend analysis indicates that the Commodity Channel Index (CCI) indicator is below -100, meaning the market price is unusually low and below its rolling moving average. Technical analysis indicates that a new, strong downtrend could be forthcoming with short positions favored. Yesterday's price action generated a Japanese candlestick pattern showing 'Bullish Harami' is a candlestick chart indicator used for detecting reversals in an existing bear trend. It is generally indicated by a small price increase that's contained within a broader downward price movement and is commonly associated with a bearish trend coming to an end. Asset volatility analysis shows that ASX's lower Bollinger Band® is at 7,148, indicating that the market is oversold and fertile for new buyers.

With market volatility ebbing, the current technical outlook indicates ASX will remain range-bound for the immediate future.

ASX shows positive signs, other assets are also on par: Nasdaq climbs 2.19% yesterday and closed at 12,700. S&P 500 increases 1.3% yesterday and closed at 4,151.28.

At the same time, Hang Seng lost 1.93% yesterday and closed at 19,100.

The index has been trending lower for about a month. ASX has fallen back around 5.56% from the significant high of 7,558 set 3 months ago.