Now looking toppish
Setting up for large corrections
FOCUSING ON industrial stocks, we look at charts of the JSE Industrial 25 index (Indi 25), as well as the Dow Jones Industrial Average in the US. The South African version has outperformed its US counterpart on a relative basis, but both are now looking toppish, and setting up for large corrections. Traders should therefore be looking to sell short on rallies, while investors are advised to reduce exposure to the stock market for now.
Please note: For more recommendations and charts by the author on shares, stock indices and commodities please go to www.themarket.co.za.