Markets looking for direction

Looking at the chart of the JSE All Share this morning, it looks like the market wants to break up. I'll rather wait for the market to breach the 28000 level before going long.

The American futures are negative this morning in the region of -0.1%, but that could change quickly. The market is looking for some direction after the rally from last week, but at the moment news was thin the past few days.

The MPC will announce their decision on interest rates shortly after 15:00. The broad consensus in the market is that we'll see a 0.5% cut in the repo rate. A cut in the repo rate will affect the Rand, retail stocks, and stocks with foreign exposure like Richemont, Steinhoff and British American Tobacco.

At 14:30 the unemployment claims and US trade balance are released. We expect the market to trade range bound up until 14:00 after volatility and volume will start to rise.

Safe trading