Omi­nous trend over­seas

Both S&P 500 and ‘Foot­sie’ show­ing signs of com­ing large sell-offs

Finweek English Edition - - Creating Wealth - COLIN ABRAMS colin@the­mar­ket.co.za Tech­ni­cal an­a­lyst

STOCK IN­DICES OVER­SEAS are again looking omi­nous af­ter hav­ing had a month of re­lief ral­ly­ing. We show the cur­rent sit­u­a­tion by looking at charts of the Stan­dard & Poor’s 500 in­dex in the United States (the world’s most watched stock in­dex by mar­ket pro­fes­sion­als) and Lon­don’s FTSE100 in­dex – the “Foot­sie”. They’re both break­ing be­low sup­port lev­els to be­gin an­other round of sell­ing. Though the com­ing sell-off is likely to be large, one pos­i­tive is that traders can cap­i­talise by sell­ing short.

Please note: For more charts by the au­thor on shares, in­dices and com­modi­ties please go to www. the­mar­ket.co.za.

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