Unknown end result of Trade-War .... JSE applied brakes

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Derek  3 Jun 2019

Good Morning,

Some analysts say that the markets can easily tumble another 16% as markets never had a trade war like this? The damage that Trump is causing world markets is enormous.

I stay with the indices while markets are still falling.

The S&P500 is still busy with the abc correction and has now dipped below the 200 day moving average. We still have unconfirmed divergence in place for a turn, but as soon as FrontRunner dips below the previous low, we do not have divergence anymore and this could be as soon as today.

The DAX made a second gap in 3 days. The first gap was a breakaway gap. We do not know yet whether the second one is a continuation or exhaustion gap? The abc correction is also noticeable on this chart.

Exactly the same pattern for the FTSE. The only difference is that the FTSE still closed on the 200 day moving average.

As you can see, world markets move together and not one of them is giving a hint of a turn yet. As trade tensions show no sign of fading, the HangSeng is continuing its negative trend this morning.

JSE Technical:
Now that the Rhamafauria is old news, the JSE started applying brakes.

See how the Satrix40 applied brakes on the current positive move.

Due to the Rand strengthening, the Financial Shares are still positive....or is this window dressing for the end of the Month?
After the Engulfing Bull candle of Sanlam, it broke the trend and EMA8 lines and has now closed above the 50 day moving average.

Hold your breath for where the Trade-War will take us to. Lookout for a candle sign or exhaustion gaps. I believe that the current gaps are continuation gaps?
Enjoy your day.
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