Trade-War Scare Bounce .... FSR Technically still in bear trend

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Derek  21 Jun 2018

Morning,

After the Trade-War scare, all markets did a bounce from down under.

International:
The East however have mixed moves with the HangSeng negative after opening positively this morning.

The NASDAQ was the one index that never closed below the EMA8 line with the Trade-War scare. It did dip intra day below this line though. Technology shares are driving it and the Index is making a new high.



It is then no surprise that the no 2 trending share on the S&P500, Netflix, is making a new high driving the NASDAQ higher. Notice that the Trade-War scare hardly influenced this share. Reminder again, when a share is in such a strong trend, cyclic signals must be ignored. (The trend is your friend!)



JSE Technical:
The JSE also made a bounce after the Trade-War scare and the Banks were the best gainers for the day. They however were also the biggest losers during the scare.

Although FirstRand gained 3.73% for the day, it is still below the 200 day moving average, EMA8 line, Trend Line and 50 day moving average. Technically, still in a bear trend. The only positive to say is that it was in oversold territory when the bounce came.



Although the MACD broke up for Bidvest, divergence in place, support holding, etc. the share only managed to close on the EMA8 line.



Compared to the US, the JSE shares are really struggling. Signs of the poor economy?

Enjoy your day.
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