Volatility will continue .... Double bottoms

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Derek  9 Apr 2018

Morning,

The volatility on world markets will continue until the Trade War between the US and China settles down. I cannot believe that Trump is so ignorant that he believes China will not counter every action he takes .... is this an ego game for him?

International:
Trade tension eased slightly, and that made Asian stocks gain this morning.

I show the main support for the S&P500. The last -2.18% drop was a direct influence from the Trade War and Trump's last announcement. The JSE reacts mainly how the S&P500 reacts.



Like the S&P, Tencent is also on support. No winners in this Trade War.



Most shares are on support in the US. If these supports do not hold, we will be in for a rough ride. I show the no. 1 trend share in the US: Xerox Corp. Notice my thick green support line.



JSE Technical:
After Sasol went ex-divident, it came back to touch the support line again and then took off like a rocket. This could be a double bottom play out. Strong support (green) and resistance (red) line can be seen on graph.



Although Bid Corporation has a red Trend Factor, I wanted to show the similar situation to Sasol where a double bottom is busy playing out.



Do you think sanity can come to Trump? All that we can do is stay with the technical signals.

Enjoy your day.

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