Australian and US Stock Market Report 25 Sep 17

On Aussie stock market report, we got the largest daily move for a little while on Thursday and this was a down move which also happened to see the lowest levels since the June 8 bottom. This was another retest of the bottom of the sideways trading range we have been in, going on now, for four and a half months. When the media keep going on about this sideways trading range you know it must be pretty obvious and that we are probably closer to a breakout then we have been.

The TV experts say you buy down here at the bottom of the range and you sell up at the top of the range and it’s just that easy to make money from the local market. However for the vast majority who want to see their portfolio grow over time this market has gone nowhere and likewise their portfolio hasn’t gone anywhere either. Markets will do this from time to time it’s a natural part of what the market does. The market doesn’t listen to us; if we are smart we should be trying to listen to it, if we want to be on the right side of it at the right time.

The Aussie market is trying to tell us that we could be very close to breaking out of this sideways trading range and possibly to the downside based on the last couple of week’s price action. Will you take note of this or will you be one of the ones who keeps buying at the bottom of the range expecting to see the bounce and the range continue indefinitely?

Remember

“Everyone knows that the market is going to correct but nobody wants to believe it’s actually going to happen”.

Australian Stock Market Report (XJO)

Australian Market (XJO) Weekly Chart – last 5682.1, Friday 22-Sep-17

Australian Stock Market Report 25 sep 17

Important Points to Note from the Weekly & Daily Chart:

  • The Weekly trend is currently Down. We have a lower top and lower bottom in place.
  • Last week formed a Down week (a week with a lower high and a lower low than the week before) closing a little below the open and the halfway point for the week indicating the sellers were still in control by the end of the week.  
  • The Daily trend is currently Down. We have a lower top and lower bottom in place.
  • Friday formed an Inside day (a day with a lower high and a higher low than the day before) closing above the open and down a little from the high.
  • The sellers were still in control however the buyers regained some ground on Friday but it was still an inside day. Tuesday has been confirmed as a lower top and Thursday (index options expiry) saw the lowest low since 8th June, 2017.
  • Thursday confirmed a down trend on the daily chart and has also swung the monthly chart to Undetermined as we now have a lower top with a higher bottom currently in place. This is indicating that we could soon be changing the big picture trend from Up to potentially Down. This is Very Important.

US Stock Market Report (S&P 500 & DJIA)

US Markets (S&P 500) Weekly Chart – last 2502.22, Friday 22-Sep-17

US Stock Market Report 25 sep 17

Important Points to Note from the Weekly & Daily Chart:

  • The Weekly trend is currently Up. We have a higher top and a higher bottom in place.
  • Last week formed an Up week (a week with a higher high and a higher low than the week before) closing right on the open in the middle of the range forming a Doji indicating the buyers and seller were evenly matched.
  • The Daily trend is currently Up. We have a higher top and a lower bottom in place.
  • Friday formed a Down day (a day with a lower high and a lower low than the day before) closing above the open and just shy of the high indicating buyers were in control by the end of the day.
  • The S&P 500 made a new all-time high of 2508.85 (20th September, 2017) which is 17.98 points or 0.7% above the August 8th top 2490.87 or 107.87 points or 4.5% higher than the March 1st top 2400.98.
  • I have come up with the following levels from different methods that will be important to watch for resistance as we move higher into Blue Sky 2267, 2279, 2286, 2293, 2305, 2318, 2334, 2385, 2401, 2423-2427, 2457-2459, 2480 & 2485.
  • The daily trend is Up, the weekly trend is Up and the monthly trend is Up.  

Upcoming Dates of Note

Upcoming Dates of Note 250917

 Share Market Technical Analysis

 

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About Shane Langham

+61 (7) 3338 3838 Email Profile

Shane has passionately followed the markets since the age of 16, and has been an adviser in the financial markets since the year 2000 having worked for a range of firms, including one of the world’s largest investment banks as well as smaller boutique broking firms. Shane is also a past Vice President of the Australian Technical Analysts Association (ATAA) Brisbane, a position he held for 6 years.

Shane is currently a Senior Private Wealth Adviser at Phillip Capital and can assist you with all of your stock market needs - whether you are looking to buy or sell shares, set up a portfolio, grow your SMSF, protect your portfolio, or trade the market. He specialises in technical analysis, risk management, and options trading and focuses predominantly on the Aussie markets.

Shane also writes two key market related technical analysis reports (including a free weekly Market Commentary Report), designed to give traders and investors the best chance possible to get the results they are after from the markets. To find out more about these reports please click here. http://www.phillipcapital.com.au/shane-langham

Shane lives on the sunny Gold Coast with his wife and two dogs. He loves chatting about the market with other like-minded people, so don’t be afraid to pick up the phone or send him an email.

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