Confluence of Confusion .... Sasol continues slide

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Derek  19 Aug 2019

Good Morning,

International:
Prominent market technician Ralph Acampora says: “I’ve never seen such a confluence of confusion, between Brexit, the North Koreans, and tariffs and Trumps tweet”. Markets rise as investors keep a wary eye on resession risks.

Ignoring all this confusion, the S&P500 turned with divergence and closed on the EMA8 line.



The ASX also closed with a doji on support on Friday with divergence in place. This morning the bounce came.



American Express turned with divergence to close above the EMA8 line.



JP Morgan Chase also turned with divergence, but could not close above the EMA8 line yet.



JSE Technical:
Sasol delayed publishing its results to wait for an independent report on the costs of the Lake Charles Chemicals Project. The market did not like this at all, and the share continued its slide with a gap. Notice that this share already had a red trend factor for a long period. The margins for their product is very small .... is this another White Elephant for the JSE investors? I believe it is going to take a very looooong period to recover from these escalated costs .... if ever?



I am a strong believer that FrontRunner first gives a warning that the bottom has not been reached, followed by divergence to confirm that the bottom now has been reached. I show this for the Satrix40.



FrontRunner:
FrontRunner is an indicator developed by Algomodel TradeFX that you will not find in any other software. Apart from showing bottoms and tops, it has quite a few other uses that I show regularly in these reviews.

Enjoy your day.
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