Category Archives: Technical Analysis

S&P500 Support

Investors have been nervously watching the progress of Wall Street against the background of mounting allegations against Donald Trump and senior members of his staff, and the “trade war” which he has instigated against China. At the same time, investors are also concerned that the continuing strength of the US economy will result in a more rapid increase in interest rates going forward.

The effect of this nervousness has been to take the S&P500 index into a correction from its all-time high of 2930 made on 20th September 2018. The fears usually associated with October month are now well behind us and it is unusual for markets to be in a corrective phase over the festive season – but then the political situation in America is nothing if not unusual. Read More

S&P500 Earnings

Whether we like it or not, the progress of the JSE is determined to a considerable extent by what happens on Wall Street. If the New York Stock Exchange (NYSE) is in a bear trend then the high probability is that the JSE will also be heading south. So, private investors are always well-advised to keep their eye on American markets and to take a view on where they might be going.

The best way to follow the NYSE is through the S&P500 index. This is a weighted index of the 500 largest companies trading on Wall Street. The 500 companies which it includes are constantly the subject of intense analysis and prediction.  American companies report every three months – so the quarterly updates are eagerly awaited and anticipated. Read More

Speculating on Aveng

Aveng was once the largest construction company in South Africa and in August 2008 it traded for just under R70 per share. Since then it has been hammered by a host of problems beginning with the 2008 sub-prime crisis, to the dearth of construction work following the 2010 World Cup, the heavy fines imposed on the construction shares by the Competition Commission for collusion and several big contracts that went bad. The result of all this has been that the share price has plummeted to just 5c. Read More

The Bull Trend Resumes

A week ago on the 22nd of August, we suggested in an article that the S&P would break up to a new record high above 2872. It has done that emphatically – rising to another record and breaking above the 2900 level last night to close at 2914.

We also suggested in that same article that this would cause our blue chip shares to follow suit and we particularly mentioned Capitec, Dischem and the Resilient group, all of which have been excessively depressed by recent adverse reporting. All of those shares have followed Wall Street up strongly and look to go higher. Read More

S&P Touches Record High

On the 9th of July 2018 and previously on the 6th of April 2018 we suggested in articles that the S&P had reached the bottom of its correction at 2581 and found strong support at the level. We also suggested that the strength of that support indicated that the correction had probably found its lowest point (2581) and would move up to break its all-time record high at 2872. Now the chart of this correction looks like this:

The 4th Correction

S&P500 Index January 2018 to August 2018 – Chart by ShareFriend Pro (Click to Enlarge Image)

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