Share Market Supports

Posted: May 20, 2016 in Uncategorized

The Fed speak hawkish and the market already start to panic…the usual.

There is two connotation to this

  • Market is addicted to support, but the FED needs to look at the economy and it needs to create ammunition in case there is a US recession.
  • China stabilized only because the USD got weaker – a rate hike will strengthen the USD (the Yuan is pegged) and wreak havoc again in China which will have to devaluate – already, just after the Fed speech, the USDCNY spiked to 6.55) re igniting the August 2015 issue.

So what are the supports now?

SP 2040/1,990. After that there is 1,940 and then the infamous 1,830

oil (brent) is USD$42 and USD$32

Gold is $1250. But if it consolidate above USD1,200 a flag to 1,280 indicates a bullish movement ($1,300-1,500)

ASX 200 respected 5,400 – the support is at 5,200 and 5,000 – baseline is at 4,600

 

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