**
XJO
Mth -
The price chart in the Toolbox Home Page
header.
(updated: 6 April 2018)
Click here to see the chart again in a new window.
Note the
details of the share price chart in the page header of the Share Market
Toolbox home page - a monthly
candlestick chart of the XJO
index (S&P/ASX 200). This is a static snapshot of the index, usually refreshed at the end of each week. You can click here to see the chart again in a new window.
(Or see an alternative chart at www.marketindex.com.au/asx200.)
- This monthly candlestick chart starts from the last big bull market
peak in October 2007,
and the vertical grid
lines are one month apart.
- The March 2018 monthly candle is now complete (and the April one is now forming).
- Each candlestick on a monthly
candlestick chart summarises the price action for a whole calendar
month.
Remember that every price chart tells a story (noting the height
of the candle body and
the presence or absence of upper/lower
tails). See more
candlestick
details here...
Observations from this chart:
- The vertical value axis on this particular chart has horizontal grid lines
from 3000 to 7000.
- This chart is reminding us that our market peaked in
October/November 2007, and is still below that peak.
- Each month the chart is compressed a little more so we can
still see the last market peak.
- Our market has not yet made a new all-time high since October 2007 - that's now more than 10 years!!!!
- You can see the monthly candles were nudging the 5000
point
level from late 2009 to March 2010 and again a year later.
- Also both the XJO
and XAO
indexes were hunting around either side of the
30-week Moving Average, before a major fall in May 2010 and recovery in
the following months; then basically traded sideways for a long time
(our money might have been better off in the bank!).
- Then in 2013 the index tried to break higher, and succeeded on the second attempt.
- In February 2015 the index jumped higher with a Big White candle, and pulled the MA curve upward, hitting resistance at about 6,000.
- Then in August 2015, the MA curved turned sharply down.
- The lower candle tails for a few months from August 2015 are sitting at about the 5000 point level.
- From June 2017, the next four candles are very similar Doji-like candles with little price movement.
About the 30-week Simple Moving Average (SMA) - the blue curve across the
chart:
- Observing the 30-week SMA according to Stan
Weinstein's strategies (see an introduction here).
(On a monthly chart, this SMA is approx a 7.5 month SMA).
- Until mid-January 2010, the index was tracking above the
SMA -
suggestive of bullish conditions.
- In early May 2010 the index plunged
below the SMA and then jumped either side of it for a while.
- From
July 2012, the SMA basically trended higher (most of the
time), with the index itself sometimes above, and sometimes below, the
SMA curve.
- In August 2015 the SMA turned sharply downwards, then bottomed in February and rallied into 2016.
- See more details about this strategy for Toolbox Members here (left hand column - Article ST-6410).
Click here to see the chart again in a new window.
For more details, also see the Weekly
Share Market Analysis in the Members' Area.
Robert
Brain
ps: Beware the sharks in the
ocean!