Positive jobs data takes shine off Australia: S&P/ASX 200 (.AXJO)
The Australian sharemarket has closed lower after positive November jobs data pared the chances of a February interest rate cut and took the gloss off local equities.
The benchmark S&P-ASX 200 index finished Thursday 18.3 points lower at 6833.1, while the broader all ordinaries slipped 14.4 points to 6942.6.
A surge in part-time work during November helped the jobless rate tick down to a seasonally adjusted 5.2 per cent, with the better-than-expected data easing market expectations of a rate cut in February.
The easing of the unemployment rate from 5.3 per cent to 5.2 per cent came after 39,000 jobs were added for the month, with the Aussie dollar climbing to 68.79 US cents from 68.45 US cents on Wednesday.
Economists did note that the improved figures were mostly weighed towards part- time work, and that they failed to hide the fact that progress towards reaching full employment had stalled over the last six months.
On the ASX, only industrials, property trusts, and utilities closed higher as the market gave up what was a broadly positive start.
Healthcare and energy were the worst performing sectors on Thursday, down 1.1 per cent and 0.88 respectively, while tech stocks also receded throughout the day.
Overall, the bias in prices is: Upwards.
The projected upper bound is: 6,985.77.
The projected lower bound is: 6,691.87.
The projected closing price is: 6,838.82.
A black body occurred (because prices closed lower 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 32 white candles and 18 black candles for a net of 14 white 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 83.4193. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 9 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 56.83. 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 118 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 89. This is not a topping or bottoming area. The last signal was a buy 9 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 3 period(s) ago.
Rex Takasugi – TD Profile
S&P/ASX 200 closed down -18.300 at 6,833.100. Volume was 27% above average (neutral) and Bollinger Bands were 6% wider than normal.
Open High Low Close Volume___
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 6,772.65 6,730.30 6,550.98
Volatility: 12 14 13
Volume: 611,049,472 602,889,536 629,994,240
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 4.3% above its 200-period moving average and is in an upward 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 bullish on .AXJO and have had this outlook for the last 2 periods.
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