Australia: S&P/ASX 200 (.AXJO) set to open lower after Wall Street plunged

Australia: S&P/ASX 200 (.AXJO) set to open lower after Wall Street plunged

Australia: S&P/ASX 200 (.AXJO) set to open lower after Wall Street plunged

Australian shares are set to open lower after Wall Street plunged on the back of weak economic data from China and ongoing Brexit frustration. Markets are preparing for the final round of central bank meetings for the year. ASX futures were down 14 points to 5598 at 4.49am AEDT Saturday. The $A was flat.

Shares on Wall Street plummeted to an eight-month low with the Dow confirming a correction and as signs emerged of a bear market in key sectors.

The main local data for the week is the release of Reserve Bank of Australia minutes on Tuesday. Capital Economics analysts said, “The RBA minutes and the government’s outlook may give us some insight around the direction of monetary and fiscal policy. Labour market data are likely to show that the unemployment rate remained steady in November. And in New Zealand, we think that GDP growth softened in the third quarter.”

Today’s Agenda

Local data: New Zealand WBC-MM consumer confidence Q4

Overseas data: Euro zone trade balance October; UK Rightmove house prices December; US NY Empire manufacturing December, NAHB housing index December

Overall, the bias in prices is: Downwards

The projected upper bound is: 5,768.34.

The projected lower bound is: 5,412.32.

The projected closing price is: 5,590.33.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 25 white candles and 25 black 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 60.2238. This is not an overbought or oversold reading. The last signal was a buy 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 40.96. 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 33 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 -78. This is not a topping or bottoming area. The last signal was a buy 2 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 4 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -59.600 at 5,602.000. Volume was 5% above average (neutral) and Bollinger Bands were 26% narrower than normal.

Open High Low Close Volume___
5,661.6005,665.2005,588.6005,602.000 660,907,776

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

Moving Averages: 10-period 50-period 200-period
Close: 5,653.74 5,787.55 6,026.26
Volatility: 22 20 13
Volume: 663,347,008 640,785,152 587,550,912

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 7.0% 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 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 6 periods.

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