Bulls fighting back in U.S. .... JSE bounce was early

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Derek  10 Jul 2019

Good Morning,

The bulls started fighting back at the current correction in the U.S. Similarly for the East this morning.

The S&P500 bounced on the EMA8 (orange) line to close only +0.12% higher than the previous day.

Although the Hang Seng is stronger this morning, it still does not look very convincing.

It should be no surprise to you if you have been following these market reviews as Advance Micro Devices had the strongest move. Why no surprise .... it is the strongest trend share in the S&P500 according to the trend factor. (189)

Bank of America only started to form a flag with the latest correction and never broke the EMA8 line.

JSE Technichal:
The bounce of the JSE was too early and against world markets. I mentioned yesterday that I did not like it when markets move in different directions.

See how RMB Holdings gave up all the gains of the previous day to follow world markets. An engulfing bear candle in an oversold territory is also not believable? Also notice that FrontRunner did not break up yet.

Dis-Chem Pharmasies is one of the few shares that did continue on the bounce. Notice how this share has been moving sideways between 2 resistance lines for the past 6 months.

Candles are important, but it is more important where they occur. An engulfing bear candle is only important in an overbought territory. Never read candles on their own, combine it with the cyclic heatmaps.

Enjoy your day.
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