Italy causes global selloff .... Case study continuation

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Derek  30 May 2018


You might recall when Greece caused a global selloff and Italy, Spain, etc. were also in the background. Well, this time it is Italy's turn! Italy's political turmoil sparked government bond selloff. As mentioned before, markets do not like uncertainties. The major selloff are banking shares.

Asian stocks tumble amid Global selloff.

All this turmoil made the S&P500 break my flag. It still closed above the 50 day moving average (dark blue line), but below the EMA8 line.

I show the index of the FTSE 100 too. You can notice that it was already in a correction even before the selloff.

Micron Technology is one of the few shares that still continued its positive trend, BUT notice that it is overbought and at resistance.

JSE Technical:
Billiton is finding some support at its break line., but no trend or EMA8 line breaks yet.

Case Study DCP:
Dis-Chem Pharmacies did not escape the selloff either and is coming back to touch its break line. Important to notice is that it has never closed above its EMA8 line yet. The EMA8 line acts as a trend line. We will keep following this share until that happens.

Enjoy your day.
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