Australia: S&P/ASX 200 (.AXJO) pointing notably lower

Australia: S&P/ASX 200 (.AXJO) pointing notably lower

Australia: S&P/ASX 200 (.AXJO) pointing notably lower

ASX futures pointing notably lower.

According to the latest SPI futures, the ASX 200 is expected to open the day down by a sizeable 1.1% or 63 points on Wednesday. This follows another disappointing night of trade on Wall Street which late in the session sees the Dow Jones down 2.5%, the S&P 500 lower by 1.8%, and the Nasdaq off 2.1%.

Coles to hit the ASX boards.

Coles Group Limited (ASX: COL) shares will hit the ASX boards this morning after its demerger from Wesfarmers Ltd (ASX: WES) was approved by the courts. The supermarket giant’s shares are expected to trade in the $13.00 to $14.00 range. The Wesfarmers share price will trade notably lower today to reflect the demerger.

The Woolworths AGM.

Wesfarmers rival Woolworths Group Ltd (ASX: WOW) is holding its annual general meeting today. All eyes will be on the meeting to see if the retail conglomerate provides guidance for the first half or full year.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 5,813.20.

The projected lower bound is: 5,510.09.

The projected closing price is: 5,661.64.


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.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 12.7797. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 5 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 31.88. 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 15 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 -143.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 5 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 sell 2 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -21.900 at 5,671.800. Volume was 5% above average (neutral) and Bollinger Bands were 42% wider than normal.

Open High Low Close Volume___
5,693.7005,693.7005,635.5005,671.800 621,913,344

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

Moving Averages: 10-period 50-period 200-period
Close: 5,808.73 5,967.40 6,049.31
Volatility: 15 16 12
Volume: 594,244,416 609,205,184 581,458,240

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 6.2% 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 volume flowing into and out of .AXJO at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on .AXJO and have had this outlook for the last 53 periods.

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