The ASX is set to slip despite a second day of records on Wall Street. About 1.05pm in New York, the Dow was up 0.2 per cent, the S&P 500 was up 0.2 per cent and the Nasdaq had risen 0.3 per cent. But by 3.50pm, the markets had turned. The Dow was down 0.3 per cent, the S&P 500 had dropped 0.2 per cent and Nasdaq had slipped 0.5 per cent.
It’s another big day for reporting season today with Coca-Cola Amatil, Domain, Qantas and Wesfarmers among the companies handing down profit reports.
SPI futures were down 7 points or -0.1 per cent to 6110 near 3.25am AEST. The Australian dollar was down -0.2 per cent to 72.27 US cents.
The S&P 500 and Nasdaq indexes hit all-time highs as Apple became the first publicly listed US company to cross $US2 trillion ($2.7 trillion) in market capitalisation, with strong results from retailers Target and Lowe’s also lifting sentiment.
The best measure of that is inflation-adjusted interest rates on 10-year Treasury bonds, which have plunged well below zero as nominal yields held fairly steady. Other signs of success include rising expectations for future prices among US households.
Those are all signals that investors reckon some degree of inflation may be on the way, in part because Fed Chair Jerome Powell and colleagues slashed interest rates to almost zero and bought hundreds of billions of dollars of government bonds. Some even think price pressures could ultimately spiral out of hand, as ultra-easy monetary policy combines with fiscal stimulus after lawmakers authorised $US3 trillion in spending and debate still more.
The market signals are “exactly what the Federal Open Market Committee should want to see to see at this juncture when inflation expectations are too low and policy space is limited,.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 6,400.98.
The projected lower bound is: 5,934.99.
The projected closing price is: 6,167.98.
A white body occurred (because prices closed higher 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 25 white candles and 25 black candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 52.3337. This is not an overbought or oversold reading. The last signal was a sell 4 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 59.14. 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 49 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 104.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 4 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 6 period(s) ago.
Rex Takasugi – TD Profile
S&P/ASX 200 closed up 44.200 at 6,167.600. Volume was 2% above average (neutral) and Bollinger Bands were 44% narrower than normal.
Open High Low Close Volume 6,123.400 6,196.600 6,122.500 6,167.600 883,023,744
Technical Outlook Short Term: Neutral Intermediate Term: Bullish Long Term: Bullish
Moving Averages: 10-period 50-period 200-period Close: 6,101.25 5,997.66 6,161.59 Volatility: 15 25 39 Volume: 747,360,512 790,930,688 844,750,784
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 0.1% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.
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 19 periods.
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