Australia: S&P/ASX 200 (.AXJO) equity bulls will get a chance to assert themselves

Australia: S&P/ASX 200 (.AXJO) equity bulls will get a chance to assert themselves

Australia: S&P/ASX 200 (.AXJO) equity bulls will get a chance to assert themselves

Australian equity bulls will get a chance to assert themselves to start the week after a massive rally on Wall Street. ASX futures were up 69 points or 1.2 per cent. The Australian dollar spiked 1.5 per cent to retop the US71¢ mark.

The risk reversal – tolerance is back – saw Wall Street surge in trading there on Friday after a monster US jobs report and dovish comments from Federal Reserve chairman Jerome Powell.

Friday’s “rally [in New York] that saw the US equities spike more than 3 per cent helped the S&P 500 Index kick off the New Year with its second straight weekly advance”, LPL Financial noted.

Today’s Agenda

Local data: AiG performance of manufacturing December

Overseas data: China trade balance December, CPI and PPI for December; Japan Nikkei services PMI December; Euro zone retail sales November; German factory orders November; US factory orders November final, Durable goods orders November final; ISM non-manufacturing December

Overall, the bias in prices is: Downwards.

The projected upper bound is: 5,791.12.

The projected lower bound is: 5,438.73.

The projected closing price is: 5,614.93.


A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 54.9086. This is not an overbought or oversold reading. The last signal was a sell 2 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 48.50. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 45 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 26. This is not a topping or bottoming area. The last signal was a sell 2 period(s) ago.


The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 4 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -14.000 at 5,619.400. Volume was 23% below average (neutral) and Bollinger Bands were 22% narrower than normal.

Open High Low Close Volume___
5,633.4005,633.4005,568.7005,619.400 475,822,080

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 5,575.63 5,702.70 6,004.31
Volatility: 20 20 14
Volume: 583,161,216 637,814,784 587,416,448

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.


S&P/ASX 200 is currently 6.4% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume out of .AXJO (mildly bearish). Our trend forecasting oscillators are currently bearish on .AXJO and have had this outlook for the last 18 periods.

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