Re the recent bearish sentiment on the ASX I think the reasons are twofold.
1. Currency arbitrage. Foreign fund managers are selling up and taking profit in AUD at a raging premium to other currencies.
2. Sovereign risk. The current Australian government could possibly be very negatively perceived overseas after their attempts at wealth distribution by trying to impose the mining tax and now their determination to introduce a carbon tax.
41% of the ASX is held by foreign investors.