Technicals | Jul 10 2017
By Craig Parker, asset manager, Moat Capital
ASX200 price action continues to be constrained between the 60 and 200 day moving average as the fight continues between the bears and the bulls with the bears seeming to take a slight lead. Based on the VIX you might want to strap yourself in for a bumpy ride as it has just broken through a key resistance level. It seems that the S&P/ASX 200 is now just a day or two away from a breakout and it is closer to the 200-day moving average than the 60-day.
The US 10-year Bond Rate has also consolidated above the 6-month average and has moved into a medium-term uptrend which isn’t always great news for the share market. The next month will determine whether the recent breakout and higher low on the monthly chart has legs. If the US 10 Year Bond Rate on the monthly chart closes above 2.45 it will be the first time in approximately 10 years that there is higher peak than the previous. A couple of charts and levels to keep an eye on are our Financials sector which seems to be struggling to get above an old support/resistance level and the S&P 500 which is around the 60-day moving average and has found support at this level on the past two occasions.
ASX200 daily
ASX200 weekly
ASX200 VIX weekly
ASX200 financials ex-REITs weekly
S&P500 daily
US ten-year bond monthly
Authorised Representative Sentinel Private Wealth AFSL 344762
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