Technical Tuesday - April 24, 2018

Cerundolo Investment Research    

Technical Tuesday Update  

Volume 2, Issue 13
April 24, 2018

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US Markets

  • Not much has change with most global indices as we remain cautious. The S&P 500, Nasdaq Comp., MDY, Russell 2000 and Dow Transports have reversed from areas of resistance.  A number of these indices, especially the Nasdaq Comp. appears to have a distributive top in place and one could argue a head & shoulders top at that.  With downside momentum building, we are focusing on negative Money Flow Units from here.  The Dow Utilities have held up well and we some a bit more strength there.

    European Markets

    •  No change here. We remain cautious the European markets and believe the recent short-term strength has run it’s course.  Italy’s FTSE MIB has been very resilient and now testing the 2015 highgs.

    Asian Markets

    • The Nikkei has hooked up nicely from support and we see near-term strength.  China’s Shanghai Composite remains very vulnerable from here and we see more near-term weakness in the Kospi 100.

    Emerging Markets

    • The Ibovespa is back in an area of resistance and likely to weaken once again.


    Commodity Markets

    • Crude Oil and Gold remain favorable in our work.


    Currency Markets

    • The U.S. Dollar had a short burst of strength in recent days, but the intermediate to long-term trend remains weak.