I have not posted for some time but am looking to post more regularly again. After the covid shock, we have basically been trading in a range. Using a Wyckoff view this is expected after a selling climax. The question is now where are we in the trading range and are we seeing a redistribution or accumulation? Starting off with a comparison of the Top 40
against the S&P500
we see that the JSE has relatively been in a downward trend since 2016. However, the resources sector has been in an uptrend relative to the rest of the Top 40
. After the covid drop resources have also recovered
well. The financial sector on the other hand has not seen any rebound effect and remains at the low levels after the drop. So following strength, it is wise to focus on the resources sector when looking for a recovery.