Technically we are still in a Bear market

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Derek  29 Jan 2019

Good Morning,

International:
Caterpillar's earnings fell short and that gave the trigger for all markets to correct. Technically we are still in a Bear market as all world indices are still below the 200 day moving average.

The S&P500 still managed to close above the EMA8 line. Most indices, like the S&P500 is caught between the 50 and 200 day moving averages. With the 50 day average (dark blue) below the 200 day average (pink). It is results season in the US, so anything can happen? In the short term we are correcting out of the overbougt territory as can be seen on the 2 HeatMap lines FXC1 and FXC2.



Caterpillar, as expected, made the second largest correction on the S&P500. (-9.13%) Notice that the correction came just below the 200 day average and that this correction has changed the trend factor back to red, warning you to stay away for now.



Microsoft broke my positive trend line with divergence. Notice how it closed on the 50 and 200 day averages that is touching each other. The opposite from the Golden Cross is the Death Cross!



JSE Technically:
All this volatility in world markets made metal prices soar and Kumba Iron Ore was the winner of the day. Notice that the 200 day average is broken and that FrontRunner predicts that the high has not been reached.



RMB Holdings had divergence in place against resistance and thus started correcting.



Huawei charges might hinder Trade-War talks and more results to come in the US will cause more volatility, so buckle up for some more bumps ahead!

Enjoy your day.
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