Germany’s Dax index rebounded nicely from the previous days slump, paving the way for a strong finish on Wall Street, but the local Aussie index seemed to have other ideas as the early gains seen on open were quickly given back as trades begin to focus on the 2 day Federal Reserve Policy meeting. The key Fed statement will be out at 5am on Thursday morning Sydney time, so be sure to expect some volatility between now and then with markets settling down more on Friday.
How did the Aussie market perform today?
S&P/ASX200 lost 4.9 points or -0.09% on volume of $4.95 billion, closing at 5447.7.
Australian sector watch
Looking over the charts
- The Aussie 200 index put on a very impressive reversal today, hitting an intraday high above 5480 before profit takers stepped in and sold the index down heavily, signalling a bearish engulfing pattern, where today’s candle completely encloses the previous day’s price action.
- Clearly this move isn’t ideal for the bulls but is very typical of the current volatile and choppy market action we’ve been experiencing since the start of September.
- Whilst the market has been looking overbought for a few days now, it is always difficult to try and pick the top but we did mention in Monday’s video outlook that over 60% of the top 50 stocks were hitting lower highs, which is somewhat bearish.
- Support is currently sitting at 5430 and below that at 5400 and resistance is sitting at 5465 and above that at today’s high around 5490.
Chart Courtesy of Invast MT4
ASX top 200 stock analysis
11% of stocks are showing oversold levels, 57% are showing overbought levels and 41% 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:
- SXL SOUTHERN CROSS MEDIA GROUP +12.88%
- JBH JB HI-FI +9.00%
- SIR SIRIUS RESOURCES NL +7.07%
- LNG LIQUEFIED NATURAL GAS +5.48%
- SXY SENEX ENERGY +5.05%
Top 5 Losers:
- DMP DOMINO’S PIZZA ENTERPRISES -6.15%
- TEN TEN NETWORK HOLDINGS -4.26%
- ALL ARISTOCRAT LEISURE -3.40%
- NVT NAVITAS -3.32%
- BCI BC IRON -3.07%
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