Contradicting Markets .... Naspers results gave spark to JSE

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Derek  25 Jun 2018


We have a unique situation that the NASDAQ was making new highs while the rest of the world indices were correcting. All the major indices are now in oversold territory and wants to make a turn while the Nasdaq is correcting? Maybe Trump’s latest moves may have the last say?

Markets in the East are still correcting this morning.

I show the S&P500 that made a Harami candlestick pattern. This pattern implies that the immediate preceding trend is concluded! Still needs to be confirmed the following day though.

You can see the NASDAQ’s correction in progress on the chart of Align Technology. After a very long trend, it touched the new high 4 times before correction started and trend line was broken. The key to take profit was the 4 touches, meaning the high cannot be broken.

In contrast, American Express wants to start breaking up. These contradicting markets are very confusing. I prefer that they must all move together.

JSE Technical:
Naspers reported that group profits were up 47% compared to last year and this sparked the whole JSE to move positively.

After a very long correction, Discovery broke its trend line. I am not sure how the new medical schemes of the Government will influence this share in the future? Notice the divergence at turn.

Similar situation with Kumba Iron Ore. Notice the first green MACD bar and FrontRunner breaking up.

If the JSE repeats its previous patterns, it would have lifted its head only one day to correct the following days again to follow world markets?

You must enjoy your day.
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