Australia | Apr 11 2013
By Ashley Jessen, director of LearnCFDs.com and author of CFDs Made Simple
Incredibly strong US markets saw the S&P500 and Dow Jones close at record highs, which provided a healthy boost to the S&P/ASX 200, rising 39.1 points or 0.78% to close at 5007.1 and more importantly, a close above the psychological 5000 mark. Despite the euphoria of the QE based US markets, the local index is still languishing 26.9% below its 2007 highs.
Employment figures came out today and the number was quite uninspiring to say the least with the 36,100 jobs lost in March coming below expectations and raising the unemployment rate to 5.6%.
Health Care made a resounding bounce back today, rising 1.30% with the Financials sector close on its heels, rising an impressive 1.14%. There were only two sectors in the red today, being Basic Materials, who gave back some excellent gains from yesterday and the Technology sector, falling 1.08% and 0.02% respectively.
Looking over the charts
5000 points has been successfully broken on the first attempt and more importantly, we established a close towards the high of the day and above the psychological round number. This bodes well for a positive follow through, despite today's intraday price action showing a small amount of uncertainty. Previous candle wicks show highs around the 5012 and 5027 levels, which will have short term technical traders watching closely for any weakness in price around these levels.
S&P/ASX 200 Gainers and Losers
The Reject Shop ((TRS)) consolidated recent profit taking to post a 4.29% gain and steady the ship for what has been an excellent run over the last 8 months with the oportunity to resume the brilliant uptrend in place. Perpetual Limited ((PPT)) rose a healthy 4.01%, placing the stock within a very short distance of blue sky territory, with resistance a mere $1.20 away.
Sundance Resources ((SDL)) has had a week to forget, pushing the limits on investors patience, falling another 11%, off the back of significant falls in the last 3 days. Resolute Mining ((RSG)) is a heartbeat away from hitting the lowest price since June 2011, falling a disappointing 7.82% and sitting precariously at $1.10, which is the last line of support for a while.
(For a more comprehensive summary of last night’s market action see FNArena’s Overnight Report.)
Disclaimer: There is a high degree of risk involved in trading various financial instruments. It is possible to lose significant amounts of money when trading the markets. As your trading decisions are beyond my control, I accept no responsibility for your trading results. Please seek professional financial advice to determine if trading is for you.
While Ashley Jessen attempts to ensure that the information herein is accurate at the date the information was produced, however, Ashley Jessen does not guarantee the accuracy, timeliness, completeness, performance or fitness for a particular purpose of any of the information provided herein and under no circumstances are they to be considered an offer, solicitation to invest or be construed as giving investment advice.
Technical limitations
If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.
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