Panic buying in US .... Touching break lines

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Derek  7 Jan 2019

Good Morning,

You always get panic buying when the market turns and most investors went short on the market. They need to buy back, but all the sellers are gone! The Trade-War talks are resuming again and together with good manufacturing data in the US caused the turn. I cannot recall if I ever saw such a volatile market in my lifetime. Another comment I saw was:"Now that the bulls are back, it is time to buy"?

The S&P500 had a +3.41% gain in panic buying. Notice that FrontRunner has rising bottoms and the MACD has now also broken up. Technically I must see this as the 3rd wave, but the down wave was only 1 day! Markets are moving too fast for me lately.

All indices around the world broke the negative trend lines. They all look the same, so let's show the ASX as it looks now. Notice how the negative downward band is broken.

Let's look at Advance Micro Devices that has the strongest trend factor in the S&P500. It broke my trend line only to fall back -9% and touch the break line. Then the surge of +11.44% to break the EMA8 line again. Do you notice the double bottom on this chart? I did not mark it. Just look where it touched my green support line.

There are so many shares to show, but unfortunately I can only show the tip of the iceberg. Let's show a triple bottom. Autodesk made a triple bottom on my support line.

JSE Technical:
The Satrix 40 broke my trend line and came back to touch it again before it took off. One often see this happen on charts.

Anglo American Platinum is busy forming a flag. It touched top resistance 8 times. If this resistance gets broken we will see some more gains. Watch for a break out of the flag.

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