Australian and US Stock Market – Technical Analysis Report 11 Sep 2017

Aussie & US Market Report 11-September-2017

The US markets have currently one of the longest Bull markets on record. In other words we have an old bull and continuing on from last week’s report “If you are going to buy a Bull then buy a young one” Dawn Bolton-Smith.

Locally you would be well aware that the Aussie market has been trapped inside a sideways trading range for over a quarter of a year now. Bouncing backwards and forwards but not really going anywhere. This is something that I believe we could soon see change. The strength of the XJO has been deteriorating over the last couple of weeks and we now find ourselves sitting on the bottom of the sideways trading range.

Now we have been here before so this is no surprise. However what is different this time is that we didn’t bounce right back up to the top of the range within 2-3 days like each time previously. This time the best we could muster was reaching the halfway point of the trading range before rolling back over once more to test the bottom of the sideways trading range.

We are back at what has been support and the place where we should bounce. If we don’t then there is only one way the Aussie market is headed and that is lower. It may be the US markets working lower which is the catalyst which causes the local market to give way and move lower. It could be something else and it doesn’t really matter because if we do break lower and the market starts to fall away what matters is what you do about it.   

Have you tighten up stops on positions or taken part profits off the table already? Do you have protection in place which will offset the damage to your portfolio or do you have short positions in place to profit from the move down? Doing any and all of the above while the market is still inside the trading range allows for better pricing to be had because once we break that will fly out the window very quickly.

Share Market Technical Analysis

Australian Market - Technical Analysis Report (XJO)

Australian Market (XJO) Weekly Chart – last 5672.6, Friday 08-Sep-17

Australian Market Technical Analysis Report 110917

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 an Inside week (a week with a lower high and a higher low than the week before) closing just above the low indicating the sellers were in full 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 a Down day (a day with a lower high and a lower low than the day before) closing below the open in the bottom third of the range confirming Thursday as the third lower top. The sellers took back control from the buyers forming 4 down days over the week.

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US Markets - Technical Analysis Report (S&P 500 & DJIA)

US Markets (S&P 500) Weekly Chart – last 2461.43, Friday 08-Sep-17

US Markets Technical Analysis Report 110917

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 Inside week (a week with a lower high and a higher low than the week before) closing below the open just above the halfway mark indicating the buyers were regaining some control.
  • The Daily trend is currently Undecided. 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 at the open and about half way on the day’s range forming a Doji (sign of indecision) indicating buyers and sellers were evenly matched by the end of the day.
  • The S&P 500 made a new all-time high of 2490.87 (8th August, 2017) which is 89.89 points or 3.7% 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 Undecided, the weekly trend is Up and the monthly trend is Up.  

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Upcoming Dates of Note.

upcoming dates to note 110917

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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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