TAGS: Technical analysis
News in Brief
Bloomberg:
- Socks cheered by Powell and China; Dollar drops
- South Africa trails emerging-markets peers as Ramaphosa faces calls to resign
- Chinese stock rally cools as investors see bumpy reopening
MarketWatch:
- Hot U.S. inflation is cooling, key PCE price gauge shows
- Powell says pace of interest-rate increases can slow as soon as December meeting
- Opinion: The S&P 500 is on the cusp of breaking through a level that might spell the end of the bear market
- Dow end nearly 200 points lower as investors weigh ISM manufacturing and inflation data, await jobs report
The S&P 500 is at a key hurdle to move into all bullish territory. The Rand is taking a beating due to the Phala Phala findings.
Global Indexes
S&P 500
We zoomed out to show the strong negative trend line of the S&P 500. It is just above its 200-day moving average, but the trend line needs to be broken to move into bull territory. The current move is still seen as a rally in a bear market.
DAX
The DAX is in bull territory as its 200-day moving average was broken 2 weeks previously and its long-term negative trend line about 3 weeks previously with its positive trend line still dominant.
HANG SENG
Theoretically the HANG SENG is busy with a rally in a bear market. It has broken its 50-day moving average but the long-term negative trend line and 200-day moving average is still above as a strong resistance. Notice that those two lines are now on top of each other. You need to zoom out a lot to draw the negative trend line.
NYSE & NASDAQ Stocks
Deere Company
Deere Company is in bullish territory, but at key top resistance. We believe that if the S&P 500 breaks resistance, this stock will break top resistance. If not, the reverse will happen.
Caesars Entertainment Corp
Caesars Entertainment is also at its 200-day moving average as resistance. It broke its negative trend line about a month previously. The S&P 500 break is also key for this stock. Hesitations at resistances are normal and one should not be too hasty to sell. Currently it is forming a J-Curve.
JSE Stocks
Absa Group Ltd
Markets do not like uncertainty and the Phala Phala report caused the Rand to weaken substantially. This caused banking shares to take the biggest drop with Absa Group leading with a 9.6% drop. Notice where Frontrunner broke down.
Mondi plc
The weaker Rand was good for Rand hedge stocks. Mondi bounced on its positive trend line with a 6.7% gain. Notice that this share is above its 200-day moving average and its Trend Factor has also turned positive.
Algomodel Strategies, Education & Features
Click on Education or go to the home page to view education posts.
Frontrunner, Gaps, Trend and Cyclic Indicators are explained in these education posts.
All stock graphs are shown with a Trend Candles Template which is a feature available in Algomodel Signals Pro.
