Bounce in US not very convincing

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Derek  22 Nov 2018

Good Morning,

We had a bounce in the US, but not very convincing. Notice that the S&P500 could not move above the previous day's high. No FrontRunner break, nor green MACD bars. Only the Heatmaps are moving more into oversold territory.

Small moves in the East as well. The ASX of Australia is the only one showing good signs of a turn. FrontRunner break, trendline break, green MACD, but still far below the EMA8 line. I showed the divergence yesterday. All this is happening in oversold territory as shown by the HeatMaps.

Very promising signs at Tencent. It is touching the 50 day moving average for the first time in a very long time. I show again the divergence where the turn was and since then we had rising bottoms in price and FrontRunner.

As none of the bounces convince me yet, lets show the bounce of E*TRADE Financial Corp that looks the most interesting. I marked the flag this share formed and notice that the bounce is still inside the flag. a Break to the top will be the same distance as the flag pole.

JSE Technical:
Anglo American's false break took it down to its 200 moving average again. This acted as support in the past. I marked where it was on this line before and notice that it was in oversold territory everytime.

See how Mondi is struggling to break its negative trend line. All cyclic signals must be ignored until this trendline is broken. It even moved into a red trend factor now.

The uncertainty might continue for a few days after the strong correction as the Bulls and Bears must show who is in charge. I want to see some positive trend line breaks before I will believe the bulls are in control again.

Enjoy your day.
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