Further falls expected on ASX index?

After reaching all-time highs previously set in 2007, the ASX:XJO has formed a significant bearish candle on the monthly chart.

The bearish engulfing candle on the monthly chart has formed at the convergence of the of the 2007 all-time high, and the upper channel of the range the ASX:XJO has been trading in since 2009.

This could potentially signal the beginning of a multi-month (or year) decline in the index. Or of course - to give the classic contradictory financial forecast - it could be a "healthy" retracement before forming new all-time highs.

Good luck!