Technical Tuesday - April 3, 2018

Cerundolo Investment Research    

Technical Tuesday Update  

Volume 2, Issue 11
April 3, 2018

Download Full Report here



US Markets

  • The S&P 500, Nasdaq Comp., MDY and Russell 2000 have continued to weaken after achieving their Money Flow Unit targets or failing at resistance zones. Downside momentum has accelerated and we remain cautious on these indices as we expect more weakness in the coming weeks.  The Dow Transports continue to hold up well, and the Dow Utilities have more upside from here.
  • The XLK is getting close to its initial target of $61.
  • Semiconductor ETF (SMH) has broken below its MFU-4 target of $102 and we see another leg down.

European Markets

  • No change here. We remain very cautious the European markets.  The CAC and DAX have broken below their initial downside MFU-3 targets and look poised for another leg down.  Spain’s IBEX continues to look very vulnerable to further weakness.

    Asian Markets

    • The Nikkei is below its 2 year uptrend and 40 week average. The Kospi remains in a weak position with downside momentum expanding.

      Emerging Markets

      • No change with the Ibovespa as we see further weakness here.

        Commodity Markets

        • Gold and Crude Oil continue to look favorable.

          Currency Markets

          • The U.S. Dollar has been in a tight range for a number of weeks, and well contained in its down channel. Both the Euro and GBP continue to look favorable.