New Tariffs from Trump .... World Indices

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Derek  31 May 2019

Good Morning,

Trump turned his gun to Mexico for more tariffs and the new trade worries has a negative affect on Asian markets.

Although the S&P500 closed positively, it made a doji on the 200 day moving average in oversold territory to confirm uncertainty. For now, the 200 day moving average is still acting as support.

Due to all the uncertainty, I only show indices today. The Hang Seng is already below its 200 day moving average in oversold territory with no sign of a turn.

The DAX broke its positive long term trend line with a gap and is also heading towards its 200 day moving average.

JSE Technical:
After the Cabinet announcement the JSE is out of sync with the rest of the world and still moving positively.

With the Rand strengthening it was the Financial sector that took off from oversold territory. Standard Bank first made the Engulfing Bull candle and next broke the trend and EMA8 lines.

The same sequence of events can be seen on the chart of Remgro. Notice that the Engulfing Bull candle came in very oversold territory.

I do not expect too much fire works ahead of the weekend as everyone is hesitant on what tweets are coming next. What I do know is that when a market is completely oversold, everyone suddenly decides that there are opportunities and not even negative tweets will stop the turn. Lets see how it plays out?

You must have a great weekend.
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