$5.2 trillion wiped from .... TIP: Do not be brave ....

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Derek  9 Feb 2018


Sorry for omitting 2 charts yesterday in the early version of the market news. If you see something like that, just check back later again, Alwyn usually fix my mistakes.

As I warned in the previous news reviews, this correction is not over. $5.2 trillion was wiped from world markets so far. I mentioned before that most corrections are an ABC, 3 leg correction. Very seldom do you get a 5 leg correction, but in markets everything is possible, therefore the trend lines!

The East is also following the US downwards this morning. I show the S&P500. I show my trend lines that is drawn on the graph. Notice that the positive trend line was broken with a gap when the correction started. Frontrunner looked as if it wanted to break its moving average with a leg B bounce? Never anticipate a break, wait for it to be confirmed.

The biggest drop for the week so far is -18.8% in the S&P500.
To illustrate trend, support and resistance lines again, I show mine for YUM.

JSE Technical:
Bank of America has appointed its team to investigate Steinhoff and that send it falling futher. -9.47%

Resources are still correcting and I show all my resistance lines for Billiton.

Similar lines for Shoprite! Do you spot the double top against the top resistance?

Do NOT be brave and think you can go against a trend line or FrontRunner. You need to wait for both to be broken. Did you notice that I drew for Shoprite a trend line on FrontRunner too. The program cannot do this yet, but it is one of the items on my list to get done by Alwyn once the Web version is up and running .... never an end to things to be done!

You must have a great weekend, and in the absence of something to do, draw those trend lines!
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