Stock Rally Stalls .... Continuation or Exhaustion gaps?

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Derek  4 Dec 2018

Good Morning,

The stock market rally stalled this morning in the East with a 'Hazy' Trade-Talk outlook .... never trust Trump! Markets have been really manipulated by the Trade-War this year. The only thing we can do is stay with the technical indicators.

All 3 indices in the US made a gap. Is this a continuation or exhaustion gap? There is no way of knowing until we see the next developments. Technically we are not extremely overbought, but the prices did move far away from the EMA8 line.

You can see the gap clearly on the graph of the DOW.

Advanced Micro Devices led chip stocks higher with a staggering +11.3% gain after the Trade-War truce. Notice the gap.

Most of the charts have gaps. You can see it on the chart of Mastercard too. The trend however is positive, so stay with the trend!

JSE Technical:
Mondi had 11 weeks of correction and is for the first time showing signs of turning. It broke my trend line.

The Resources index also gapped up and broke the EMA8 line.

Enjoy your day.
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