Trade-War taking its toll .... Smoke at Resilient

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Derek  26 Mar 2018

Morning,

International:
The Trade-War between Trump and China is taking its toll now. Downward momentum is however easing as trade-war fears ease slightly.

The S&P500 touched the 200 day moving average (support) and closed just above it. Notice that the HeatMaps and FrontRunner are in oversold territory.



While we wait for the turn (Futures look strong), I show another divergence example. When E*Trade Financial Corp could not break top resistance and FrontRunner gives divergence, the fall started. I just have this feeling that we will not get divergence at the bottom turn though. We will have to wait and see.



JSE Technical:
Moody's did not downgrade us further and changed the prospects from negative to stable. Lets see today if it has any influence on our market.

The smoke at Resilient and associated properties are slowly turning into a fire. They did however appoint another company to re-evaluate the value of their properties. Did they use the same trick as Steinhoff? Just have a look on the effect it had on this index. The Trend Factor changed to red, previous support was broken, when it bounced it came to touch the resistance (previous support) and 50 day moving average at the same time before dipping again. Not a good sector to be in currently!



Barloworld is on support again. Will Moody's news let it break resistance today?



RNI Adjustment:
We adjusted the data of Reinet by adding the old REI data to the new RNI. You can just right click on the RNI symbol in the JSE list and choose the option : Reload Data. It is a terrible chart though .... only negative trend all the way. It is currently testing the lows of 2014.



Enjoy your day and short week.

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