Technical Tuesday - September 4, 2018

publication date: Sep 4, 2018

Cerundolo Investment Research    

Technical Tuesday Update  

Volume 2, Issue 30
September 4, 2018

Download Full Report here


Highlights:

US Markets

  • Not much has changed from our last note as we find both the Nasdaq Composite and Russell 2000 near the upper end of their regression trend channels which typically offers a pause phase.  With no distributive tops in place, we would continue to look at pullbacks as a buying opportunity.  The MDY is slightly above support and remains a favored area of the U.S. market.  The Transports continue to trade well and we expect more upside from here.

European Markets

  • Downside momentum continues to expand for the DAX, CAC and Spain’s IBEX.  Italy’s FTSE MIB is bouncing from its initial target zone which we believe will be short lived.  Overall, we remain very cautious the major European markets.

 

Asian Markets

  • Japan’s Nikkei continues to hold up well and remains our favored Non-U.S. market.

 

Emerging Markets

  • China’s Shanghai Composite is holding at its initial target range which we believe will eventually give way to another leg lower.  The Kospi 100 has rallied into an area of resistance and we expect it to fail.  The Emerging Market ETF (EEM) has a top in place with an initial downside target of $40

 

Commodity Markets

  • The uptrend in WTI Crude Oil remains in place.  Gold has reversed and appears poised to test the recent low.

 

Currency Markets

  • The U.S. Dollar and Euro remain boxed in a tight range.