Technical Tuesday - July 31, 2018

publication date: Jul 31, 2018

Cerundolo Investment Research    

Technical Tuesday Update  

Volume 2, Issue 26
July 31, 2018

Download Full Report here


Highlights:

US Markets

  • Both the Nasdaq Composite and the Russell 2000 have stalled at the upper end of their intermediate-term regression trend channels which we highlighted last week.  With both indices now at short-term support, the next few days will be important to watch for either a reversal higher or a break lower.  This is all within the context of a long-term uptrend.  The Dow Transports are starting to move above a key area of resistance which would be bullish near-term.  We have once again included a chart we showed a few weeks ago of an equal-weighted index of the Pharmaceutical, Medical Devices and Biotech groups which we remain bullish on.  This custom index has held up extremely well for the month of July and we remain bullish long-term.

European Markets

  • The CAC, DAX and Spain’s IBEX are all back up to areas of resistance.  We remain cautious the European markets.

Asian Markets

  • Japan’s Nikkei remains favorable and likely to test the January highs.  The Hang Seng remains in a weak position and we would continue to avoid this market.

Emerging Markets

  • The Kospi 100 is holding support in the 2200 area and we have the Ibovespa back into resistance

Commodity Markets

  • WTI Crude Oil is holding up well above support and we would remain long.  Gold has held its initial target and a tactical buy right here.

Currency Markets

  • The U.S. Dollar (DXY) and EURO are boxed in a tight range.  We continue to monitor which way they break, up or down for the next directional leg.  The Yen is close to signaling a move to the 114 area.