Overnight Moves

Today, we looked at 13 charts; below are only some of them, but first, let’s have a look at the overnight moves. Commodities have taken a hit, with silver being the most affected. In the case of silver, it would seem that this is just profit-taking, as we see no news headlines that can confidently explain the selling, especially given the conflict in the Middle East, which would normally drive buying in safe havens. Oil has managed to hold up overnight, gaining 2.61%.

S&P 500 Index

Yesterday, we saw our level of 6,800 get tested as we dipped slightly below, but did manage to come back up, and we even closed near the highs of the session, which indicated that perhaps the market does not expect the situation in the Middle East to last very long or that the worst of it has already passed, however, this morning we are lower than where we ended last night, which is understandable given volatility being so high, but we cannot have any expectations as to how the market reacts given this time of uncertainty. We suggest waiting for headlines and seeing how things play out if we are going to keep going down or bounce back up. We are currently looking at 6,800 as a level of support, then 6,850, and 6,950 for resistance. The next support after 6,800 would be 6,750 for a swing-low.

Nedbank (NED)

Nedbank had earnings and came out with pretty decent numbers, but we are already trading at swing highs already, which makes it difficult to gauge direction exactly. A lot of the participants in today’s session will have been drawn in by the news, and it will not be surprising to see some more selling in today after the recent strong move up, as people take profits. We will have to wait and see how this one trades this morning, and if the buyers can hold. We recommend watching Nedbank today.

KOSPI Composite Index

Let’s have a look at the Korean market, which has been doing extremely well as of late. KOSPI has seen its first big red day in recent months, down 7.24%. This really stands out to us as this could be an opportunity for retracement down into 5,400, as we think it’s currently a little overextended. Hong Kong Tech normally goes hand in hand with KOSPI, but currently, they are out of sync, so there is some catching up to do with this market in terms of the tech sector, as they are more tech inclined.

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