Technical Tuesday - March 27, 2018

Cerundolo Investment Research    

Technical Tuesday Update  

Volume 2, Issue 10
March 27, 2018

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US Markets

  • The S&P 500, Nasdaq Comp., MDY and Russell 2000 continue to weaken after failing at their Money Flow Unit targets or resistance zones. Downside momentum is expanding, and we remain cautious these indices as they remain vulnerable to further near-term weakness.  The Dow Transports is holding up well, and the Dow Utilities are turning up from their initial downside target area.
  • The XLK has been diverging on a momentum basis and appears to have another 5% downside from here.
  • Semiconductor ETF (SMH) has also been diverging. A close below $102 puts it in a weak position.

European Markets

  • No change here as well. We remain very cautious the European markets.  The CAC and DAX have broken below their initial downside MFU-2 targets and look poised for the next leg down.  Spain’s IBEX continues to look very vulnerable to further weakness.

Asian Markets

  • The Nikkei has failed to hold support and downside momentum is building. We continue to be cautious the Kospi.

Emerging Markets

  • We see further weakness in the Ibovespa near-term. Avoid adding exposure at this point.

Commodity Markets

  • Both Gold and Crude Oil look favorable.

Currency Markets

  • No change in what has become a long-term call. The U.S. Dollar remains in a weak position and we like the GBP and EURO on the long side.