Damage done to Markets since .... Bounce on JSE

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Derek  30 May 2019

Good Morning,


Since Trump's May 5 trade tweet, the damage done to world markets are enormous. Quite a few indices have broken the 200 day moving average downwards. The S&P500 dipped below the 200 day moving average and managed to close above it. Notice the gap .... exhaustion gap? Unconfirmed divergence is still in place.

Bank of America is already below the 200 day moving average (pink line), also with unconfirmed divergence in place.

Some tech stocks took the biggest hammering. Intel Corporation came from $59.50 to the current $44.23. (-25%)

JSE Technical:
The news of Naspers listing in Amsterdam was positive seen by the market. Naspers broke its negative trend and EMA8 lines. Notice how the 200 day moving average acted as support.

The Financial Sector also made a bounce in oversold territory to close just below the 200 day moving average.

We will have to wait and see if the 200 day moving average acts as support for the S&P500. It is important as many institutions start selling if it dips below this line and that will depress markets even more.

Enjoy your day.
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