Australia: S&P/ASX 200 (.AXJO) remains on edge despite two sharp rebounds in two of the world biggest sharemarkets
The Australian sharemarket finished a volatile session in the red again as global markets remained on edge despite two sharp rebounds in two of the world biggest sharemarkets.
The S&P-ASX 200 index quickly reversed early losses after the US S&P 500 index pared an opening 2 per cent loss to close down 0.6 per cent last night as earnings optimism faded.
But the domestic benchmark dropped back into the red, only to rally into the black after the Shanghai composite index spiked from a one per cent loss to a 1.5 per cent gain at the lunchbreak, with the vertical nature of the rally pointing to the “national team” buying to support the market again.
The S&P-ASX 200 eventually closed down 14.1 points, or 0.24 per cent, at 5829 with resource and consumer stocks leading losses as commodity prices fell on the weakening global growth outlook.
Offering some relief to cash-strapped consumers, oil prices haven fallen 11 per cent over the pats two weeks.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 6,069.46.
The projected upper bound is: 5,939.58.
The projected lower bound is: 5,698.42.
The projected closing price is: 5,819.00.
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 21 white candles and 29 black candles for a net of 8 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 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 23.5402. 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 28.99. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 5 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 -90. This is not a topping or bottoming area. The last signal was a buy 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 12 period(s) ago.
Rex Takasugi – TD Profile
S&P/ASX 200 closed down -14.100 at 5,829.000. Volume was 11% above average (neutral) and Bollinger Bands were 145% wider than normal.
Open High Low Close Volume___
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 5,888.45 6,146.36 6,071.07
Volatility: 20 13 12
Volume: 627,188,160 613,194,432 574,530,432
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 4.0% 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 34 periods. Our momentum oscillator is currently indicating that .AXJO is currently in an oversold condition. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.