Markets are taking a step back

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Derek  3 Sep 2018

Good Morning,

Markets are taking a step back as we remain in overbought territory.

Although the NASDAQ closed positively, we remain in overbought territory and FrontRunner broke down.

See how the NIKKEI also bounced down from top resistance. FrontRunner also broke down together with a MACD red bar. Notice the red HeatMaps .... we are not in buying territory! It is on the EMA8 line this morning with a -0.6% drop.

After Boeing made a short term double top against resistance, it took the correction path downwards. Notice where FrontRunner broke down.

JSE Technical:
The Banks are still holding strong, although they are in overbought territory. Notice how the EMA8 line is acting as support for FirstRand.

Bidcorp is still moving strong with the trend and using the EMA8 line everytime for support. Remember that cyclic signals get ignored in a strong trend! We are starting to get close to top resistance with divergence already in place .... time to be very careful.

With MTN's problems again in Nigeria, I just want to show again that I avoid any share with a red trend factor. Notice where the trend factor started turning red for MTN and then later dark red.

I will be going on leave on Friday for 2 weeks when there will be no market reviews until I am back. You can experiment yourself in my absence by downloading TradeFX. It is free for a month.

You must enjoy your day.
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