Market’s certainly received a fresh tank of fuel overnight as Janet Yellen, on behalf of the Federal Reserve, provided more clarity around their goals in raising interest rates in the future. The removal of the word ‘Patient’ and a focus on raising rates in a measured way, providing a much needed boost to the S&P500, Dow Jones, Nasdaq, Crude Oil and even Gold but did no favours for the US Dollar as it fell over 500 pips before bouncing back, closing down around 230 pips by the end of the session. The fall in the US Dollar was the worst one day loss since 2009. The Aussie 200 index saw life flow back into it as our index rose an incredible 1.8 per cent for the day with all sectors in the green except for Information Technology. The Aussie Dollar also bounced on the weakening US Dollar and currently sits at 0.7730.
How did the Aussie market perform today?
S&P/ASX200 gained 108.5 points or +1.82% on volume of $6.61 billion, closing at 5950.8.
Australian sector watch
Looking over the charts
- The Aussie 200 index chart is looking quite spectacular with support being found off the recent lows. On Monday’s video and over recent blog posts we spoke about the importance of the 5750 level holding and it has done that.
- Momentum is clearly favouring the bulls as the long term moving average continues to point strongly higher and we approach new fresh highs yet again, providing some of the best returns for invested funds for over 18 months.
- One of the strong points to note is that we have closed very close to the highs of the day and today’s close is right near the highest price since 2008. On the monthly Aussie 200 index chart (not shown below) we are starting to notice bearish divergence, which we’ll be keeping a close eye on.
- Support is currently sitting at 5940 and below that at 5900 with resistance running low but sitting at 5965 and the recent high at 5998.
Chart Courtesy of Invast MT4
ASX top 200 stock analysis
22% of stocks are showing oversold levels, 21% are showing overbought levels and 62% of stocks are currently above their long term moving average as of close of trading today. View the image below to better understand overbought and oversold levels.
S&P/ASX 200 Gainers and Losers
Top 5 gainers:
- SIP SIGMA PHARMACEUTICALS +9.30%
- FMG FORTESCUE METALS GROUP +6.70%
- NCM NEWCREST MINING +6.49%
- ARI ARRIUM +6.25%
- BDR BEADELL RESOURCES +6.25%
Top 5 Losers:
- MYR MYER HOLDINGS -10.13%
- HZN HORIZON OIL -8.00%
- AGO ATLAS IRON -6.67%
- LYC LYNAS CORPORATION -4.65%
- PMV PREMIER INVESTMENTS -4.06%
Please note that these are our initial impressions and that it is important to read all disclaimers on this website when considering the information. If you would like to discuss further please contact:
Ashley Jessen
Director of Communications
Email: ashley_jessen@invast.com.au
Phone: 02 8036 7567