Poor results effects DOW .... Continuation Gap

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Derek  26 Apr 2019

Good Morning,

Results Season in the U.S. is nearly at an end, but it seems as if the poor results were kept for last.

The DOW was the lagging market due to Boeing, but it has a few more bad earnings on its list to close just below the EMA8 line. Notice the divergence at the previous top.

3M Co is the latest addition in the DOW with poor results. Notice the divergence and that it has never managed to get a green trend factor, it has a red one now.

Shares with poor results makes a gap to the bottom, but those with good results makes a gap to the top. Facebook has never been one of my favorites, but do notice the 2 gaps. The first one was a breakaway gap and the second one is a continuation gap.

JSE Technical:
After its previous launch, PSG ran out of fuel and fell back to the the launching platform. It made a long leg doji just above support. Notice the divergence at the previous high, I marked it on the chart.

I showed Coronation previously and mentioned that some better days are ahead for them. Notice how the trend moved into second gear. Just stay with the trend and ignore cyclic signals.

The good news for me is that the S&P500 has not broken the EMA8 line during result season. Hopefully we will get another attack on the top resistance after some consolidation.

You must have a great weekend.
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