Bounce at US .... Technically in a Bear Market

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Derek  16 Nov 2018

Good morning,

Although we had a bounce at the US after a 5 day skid, not one of the indices could break an EMA8 line. One of the hedge fund bosses warned to get ready for some "scary moments". Now is not the time to be brave, but rather wait for some real confirmed signals.

I show the NASDAQ that bounced the most to touch the EMA8 line. We are far below the 200 day moving average and technically this index is in a bear market while below this average.

I show how Apple is below the 200 day moving average. Although we have a FrontRunner break and green MACD bar, this is not the time to follow it in such a bearish trend.

YUM! Brands could not break top resistance and touched it 9 times. (Very strong resistance) It now closed below the EMA8 line and also broke my trend line.

JSE Technical:
Sanlam and BID Corporation are busy forming a flag. a Break to the top will be very bullish. I show Bid Corporation's flag.

After its false break to the top, EXXARO Resources corrected all the way back to bottom support again to touch it and then bounce. Notice the FrontRunner break, green MACD bar, EMA8 break and my tight trend line break.

We are in extremely difficult times in the market. It is best to wait for confirmed signals and not react on one day bounces.

You must have a great weekend.
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