Trading Day – 18th May

The S&P/ASX 200 is up over 20 points at midday, slowing down amidst a correction that began in early April (down over 7% or 250 points). Asian markets are all up, the Nikkei 0.6%, the Hang Seng 0.29% and Singapore steady. The AUD is up slightly to 1.0609 against the USD, whilst gold is falling after news George Soros sold his $800 million stake, trading at $1487 USD per ounce and WTI oil at $97.67 USD per barrel.

The lead from overseas markets – although mixed in the US was broadly down in Europe (all major indices down by over 1%) has not translated into similar falls, just volatility.

The daily charts and intraday buying suggest a new support level at 4650 points is emerging. Individual stock analysis shows evidence of continued support and a rebound off current low price levels. The telco stocks (TLS and TEL) are rising sharply, whilst the banks have appeared to have found a bottom.

63 day moving average and 20 day cyclical indicator