Australia: S&P/ASX 200 (.AXJO) investors took their lead from Wall Street and exited equity positions in favour of bonds

Australia: S&P/ASX 200 (.AXJO) investors took their lead from Wall Street and exited equity positions in favour of bonds

Australia: S&P/ASX 200 (.AXJO) investors took their lead from Wall Street and exited equity positions in favour of bonds

Australian shares dropped as local investors took their lead from Wall Street and exited equity positions in favour of bonds.

The S&P/ASX 200 Index fell 44.8 points, or 0.7 per cent, to 6440 while the broader All Ordinaries lost 43.8points, or 0.7 per cent, to close at 6536.6.

Investors in the US returned from a long weekend break on Tuesday and immediately exited their positions in favour of fixed income investments, dragging all three major Wall Street benchmarks lower.

The local market was among the weakest in the region on Wednesday. While Japan’s Nikkei 225 slid 1.2 per cent and Korea’s KOSPI fell 1.1 per cent, Hong Kong’s Hang Seng index was down just 0.1 per cent and the Shanghai Composite added 0.8 per cent.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 6,260.23.

The projected upper bound is: 6,554.30.

The projected lower bound is: 6,336.29.

The projected closing price is: 6,445.30.

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 34.7025. 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 58.34. 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 4 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 41. This is not a topping or bottoming area. The last signal was a sell 3 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 buy 7 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -44.800 at 6,440.000. Volume was 13% below average (neutral) and Bollinger Bands were 38% wider than normal.

Open High Low Close Volume___
6,484.8006,484.8006,419.3006,440.000 544,648,128

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

Moving Averages: 10-period 50-period 200-period
Close: 6,450.45 6,291.52 6,042.16
Volatility: 13 11 14
Volume: 623,321,344 589,585,600 617,967,104

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 6.6% above its 200-period moving average and is in an upward trend. Volatility is high 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 29 periods.

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