Australia: S&P/ASX 200 (.AXJO) investors continue to reposition for slowing global growth

Australia: S&P/ASX 200 (.AXJO) investors continue to reposition for slowing global growth

Australia: S&P/ASX 200 (.AXJO) investors continue to reposition for slowing global growth

Australian shares are poised to extend losses from Friday as investors continue to reposition for slowing global growth. ASX futures down 14 points.

The latest trigger came from the February US jobs report; the economy there added a mere 20,000 jobs last month v expectations in the 180,000 range.

Shares on Wall Street ended slightly lower heading into the weekend helped with a paring of losses late in the session.

“When a monthly number is so far off the consensus forecast, it is understandably viewed with suspicion – and this time is no different,” Oxford Economics’ Bob Schwartz said.

“Adjusting month-to month volatility in economic data caused by seasonal forces is always a challenge for government statisticians, but the task is even more difficult during the winter months when weather-related influences play a more important role. In addition to some heavy snowstorms last month, the government shutdown and its aftermath distorted the results as well.”

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 6,014.49.

The projected upper bound is: 6,299.39.

The projected lower bound is: 6,084.33.

The projected closing price is: 6,191.86.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white candles.

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 45.1033. This is not an overbought or oversold reading. The last signal was a sell 1 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 59.83. 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 sell 1 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 12. This is not a topping or bottoming area. The last signal was a sell 1 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 1 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -23.600 at 6,180.200. Volume was 22% below average (neutral) and Bollinger Bands were 28% narrower than normal.

Open High Low Close Volume___
6,203.8006,203.8006,171.9006,180.200 486,061,504

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

Moving Averages: 10-period 50-period 200-period
Close: 6,195.06 5,960.47 6,015.83
Volatility: 11 12 14
Volume: 704,564,416 598,662,912 604,280,704

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.

Summary

S&P/ASX 200 is currently 2.7% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of .AXJO at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on .AXJO and have had this outlook for the last 44 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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