More losses for Australia: S&P/ASX 200 (.AXJO) as trade hopes dim

More losses for Australia: S&P/ASX 200 (.AXJO) as trade hopes dim

More losses for Australia: S&P/ASX 200 (.AXJO) as trade hopes dim

The Australian share market slumped for a second day, with losses across the board as passage of a US-China trade deal appears less and less likely anytime soon.

The benchmark S&P-ASX 200 index on Thursday closed down 49.5 points to 6672.9, while the broader all ordinaries was down 50.6 points to 6777.7.

“It’s all about the US-China trade relations,” said Burman Investments portfolio manager Julia Lee.

“It does not look like the US and China are likely to reach a trade deal this year, and that has implications not just for the global economy but us here in Australia.”

Sectors that are exposed to the global economy were down the most, Ms Lee noted, with the export-oriented mining and health care sectors dipping 1.0 per cent and tech stocks down 1.3 per cent.

The losses came on top of Wednesday’s 92-point drop, with the 141-point drop over two day the index’s worst two-day performance since a 252-point loss on October 2-3.


* The benchmark S&P/ASX200 index closed down 49.5 points, or 0.74 per cent, to 6672.9 points

* The All Ordinaries closed down 50.6 points, or 0.74 per cent, to 6,777.7 points.

* The SPI200 futures index closed down 45, or 0.67 per cent, to 6,672.

Technical Indicators

Overall, the bias in prices is: Sideways.

The projected upper bound is: 6,808.59.

The projected lower bound is: 6,537.93.

The projected closing price is: 6,673.26.


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 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 45.7780. 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 46.31. 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 98 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 -110.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 1 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 0 period(s) ago.

Rex Takasugi – TD Profile

S&P/ASX 200 closed down -49.500 at 6,672.900. Volume was 11% above average (neutral) and Bollinger Bands were 41% narrower than normal.

Open     High      Low     Close     Volume___
6,722.4006,722.4006,637.3006,672.900 710,324,352
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 6,745.31 6,684.74 6,488.51
Volatility: 14 13 13
Volume: 605,540,352 612,961,472 638,133,888

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 2.8% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 18 periods. our momentum oscillator has set a new 14-period low while the security price has not. This is a bearish divergence.

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