Technical Tuesday - April 17, 2018

Cerundolo Investment Research    

Technical Tuesday Update  

Volume 2, Issue 12
April 17, 2018

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US Markets

  • The S&P 500, Nasdaq Comp., MDY and Russell 2000 have bounced off initial support areas on an intermediate-term time frame, but the short-term daily timeframe would indicate we are not out of the woods. The Dow Transports and Utilities continue to hold up well and we see near-term strength there.  The SMH is in the middle of a large range and the XLK is at an important short-term inflection point.

European Markets

  • No change here. We remain cautious the European markets and don’t expect much upside from here.  Italy’s FTSE MIB has held up very well and now testing the upper end of its long-term range.  Spain’s IBEX continues to look very vulnerable to further weakness.

Asian Markets

  • The Nikkei is testing its long-term trend line and 40 Wk. Avg. Momentum has recycled to a neutral level  which puts this index at a key juncture point.  China’s Shanghai Composite looks very vulnerable from here and we are very cautious this market.  The Kospi 100 remains in a weak position and we expect it to test support in the 2200 area

Emerging Markets

  • We remain cautious the Ibovespa as more weakness is expected.

Commodity Markets

  • Gold and Crude Oil remain favorable in our work.

Currency Markets

  • The U.S. Dollar looks poised for another leg down from here. On the opposite side of the ledger, both the Euro and GBP look favorable.