ASX 200 Gains Extend — But Should You Sell Before a Pullback? | Episode 294

By Jason McIntosh | 22 August 2025

ASX 200: A Powerful Rally Continues

The ASX 200 extended gains this week, hitting a new all-time high on Thursday and adding nearly 5% for August so far. Since the April low, the index has surged 25% in just over three months — an extraordinary run by any measure.

What’s driving confidence is the way every dip has been short and shallow. Buyers continue to step in quickly, keeping momentum alive and reinforcing that the path of least resistance remains to the upside.

• Price remains above the rising 50- and 100-day moving averages.
• Pullbacks have been contained, lasting only days before reversing higher.
• Money continues to flow back into equities, with little sign of sustained selling pressure.

“The aim is to stay positioned with the trend — not try to trade every pullback.”

While a larger consolidation is inevitable at some point, the underlying structure remains bullish. For now, this looks like a market investors still want to buy into.

Learn more about how moving averages help identify market structure

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Equal Weight ASX 200: Broad Participation

The ASX 200 Equal Weight Index also closed at a new all-time high this week, after barely a two-day pause. This shows that the rally is broad-based — not just a handful of large-cap names driving the index.

• Gains of nearly 6% in just three weeks highlight strong momentum.
• A shallow retreat earlier this month was quickly met with renewed buying.
• Broader strength is also visible in the Small Ordinaries and Emerging Companies Index.

Broad participation is one of the hallmarks of a healthy bull market, suggesting this trend has durability.

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S&P 500: Consolidation, Not Collapse

Unlike the ASX, the S&P 500 has taken a breather, consolidating just below its July all-time high. That ends a streak of new highs that’s now delivered 19 records in 2024.

This pause isn’t unusual — it’s routine consolidation within a bullish trend:

• Prices remain above rising 50- and 100-day moving averages.
• The structure still shows a sequence of higher highs and higher lows.
• Historically, all-time highs more often lead to more highs than lasting tops.

Seasonal factors also matter: September has historically been one of the weakest months for stocks, so further sideways trade or mild pullbacks wouldn’t be surprising.

“It’s the underlying trend that determines positioning — and the trend remains up.”

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Equal Weight S&P 500: Holding Firm

The equal-weighted S&P 500 provided a constructive signal this week. While the headline index has pulled back, the equal weight has held firm above the 50-day average and kept most of its recent gains.

This shows that broad participation remains intact. A few big tech names may dominate headlines, but most of the index is still trending higher.

Looking ahead, a few weeks of consolidation could actually strengthen the base for another push higher — possibly into October or November.

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Bottom Line

Across both markets, the trend remains bullish.

• The ASX 200 is showing powerful momentum backed by broad participation.
• The S&P 500 is consolidating, but remains structurally sound.
• Shallow dips continue to be buying opportunities, not signals of lasting tops.

The strategy remains clear: stay with the trend, manage risk with wide trailing stops, and treat consolidations as healthy pauses, not red flags.

👉 For a deeper dive into technical analysis, check out our Weekly Strategy Sessions.

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Motion Trader‘s algorithms scan more than 2,000 ASX stocks daily in search of medium term investment trends. We then tell our members precisely when to buy shares. And most importantly, we tell them when to sell.

Try a no obligation FREE 14-day trial of Motion Trader, and see what an algorithmic trading approach could do for you.

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Video Timestamps

00:00 Intro

00:40 ASX 200 extends gains (but how long can it continue?)

03:30 This is the risk of trying to pinpoint the next pullback

04:40 ASX 200 Equal Weight indicates something important

06:20 I’m doing THIS in the ASX right now

07:25 S&P500 stalls below record high (is it a warning?)

09:20 Be open to this possibility during September

10:20 A key clue is coming from the S&P 500 Equal Weight index

12:15 This is the bottom line for US stocks now

🎯 Exclusive Strategy Session Member Content:

[13:20] US small caps pull back (but look at this)

[15:20] Small Ords is getting stretched – this is what I’m doing now

[17:30] Don’t lose sight of this in Emerging Companies

[19:35] What happens if gold breaks down?

[32:25] Copper appears ready to do this….

[35:15] Should you buy oil now?

[37:05] Uranium can’t rally until THIS happens

Jason McIntosh | Founder, Motion Trader

Jason’s professional trading career began over 3 decades ago. He’s a founder of two stock advisory firms, a listed funds management business, and has helped thousands of investors navigate the stock market. Click here to read Jason’s incredible story of, at age 20, sitting alongside some of the world’s greatest traders (and the life changing experience that came with that).