Stocks correct on weak outlook .... Resources on JSE

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Derek  3 May 2019

Good morning,

I am not surprised that we are correcting at current levels as we are at an all time high. A weaker outlook will have an effect on stock prices going forward.

The S&P500 could only close 3 days above the break line .... for a true break it had to stay 4 days above the break line .... thus it is a false break! ( I hate false breaks!)

The ASX touched its resistance 5 times, but could not break it.

It is not necessary to say that we will get a massive correction, the market may move sideways for a while like American Tower Corp.

A stock that I have not shown before is Colgate-Palmolive. It climbed into a positive trend factor and also reported good results.

JSE Technical:
The Financial sector is still moving positively. Discovery will hopefully soon move into a positive trend factor again.

Resources were still correcting, but completely oversold now. Notice how Anglo American is making a small body candle on support in oversold territory.

Correction on what I said yesterday: "Sell in May and go away!"
Do not believe everything that is said, rather follow the true technical facts. Corrections do come, but not necessary always in May.

You must have a great weekend.
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