We remain in Bear trend .... FrontRunner prediction & Divergence

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Derek  19 Oct 2018

Good morning,

International:
The S&P500 bounced down after the doji and remains below the EMA8 line (orange).
While it remains below this line, we remain in a Bear trend.



I went back to 2015 to find a similar prediction of FrontRunner to see how the market turned. It always tuns with divergence, but one gets 3 levels of divergence.
Lvl 1: Price makes new low, but FrontRunner is not making a low.
Lvl 2: Price touches previous low to create a double bottom, but FrontRunner is much higer.
Lvl 3: The price dips down but do not reach previous low, but the angle of FrontRunner is much steaper than the price drop.

I marked the lvl 3 unconfirmed divergence on the S&P500 chart.
I show the lvl 2 divergence of 2015 of the S&P500.



The HangSeng bounced on support this morning and I show the unconfirmed lvl 2 divergence. This index is also still below the EMA8 line with a very bearish trend line.



Although NVIDIA Corporation broke its trend line, notice how it is hesitating below the EMA8 line. I always stress that you want everything to work together and breaking the EMA8 line is one of them.



JSE Technical:
The JSE never escapes world negative moves, and it was like that yesterday again.
This bearish trend took Investec all the way to a negative trend factor.
It is consolidating on current support, but still below the EMA8 line.



Similarly for Standard Bank. Shares on the JSE do not have a pretty picture!



Lets hope markets get rid of these negative trends .... and Trump!

You must have a great weekend.

PS. Any requests on what to show can be send to derek@zoclee.com
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