Bursa KLCI

4 June 2018 – A strong US economy, uncertainty in Italy

Indices
Dow Transportation closed at 10814.04 with a bearish candle on its 8 EMA and above its 21 EMA and 50 SMA. Daily trading range was 188.14. BuySellTimer is in its positive cycle. TSI is in a positive cycle and negative slope. Market direction – Intermediate – Buy. Current – Sell/Buy. Negative divergence signal.

Dow Industrial gapped up and closed at 24813.69 with a small bullish candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 137.23. BuySellTimer is in a positive cycle. TSI is in a positive cycle and positive slope. Market direction: Intermediate – Buy. Current – Buy/Buy. Negative divergence signal.

Russell 2000 closed at 1653.3705 with a bullish candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 14.48. BuySellTimer is in a positive cycle. TSI is in a positive cycle and positive slope. Market direction: Intermediate – Buy. Current – Buy/Buy. Negative divergence signal.

Nasdaq 100 closed at 7143.5702 with a bullish marubozu candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 47.67. BuySellTimer is in its positive cycle. TSI is in a positive cycle and positive slope. Market direction: Intermediate – Buy. Current – Buy/Buy.

S&P 500 gapped up and closed at 2746.87 with a small bullish candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 8.62. BuySellTimer is in its positive cycle. TSI is in a positive cycle and positive slope. Market direction – Intermediate – Buy. Current – Buy/Buy.

Metals and Commodities
WTI Crude oil futures (CL) closed at $64.88 per barrel with a bearish candle below its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 1.47. BuySellTimer is in a negative cycle. TSI is in a negative cycle and negative slope. Market direction: Intermediate – Sell. Current – Sell/Sell.

Gold futures (GC) closed at 1295.9 with a low closing spinning top doji candle below its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 8.5. BuySellTimer is in a negative cycle. TSI is in a negative cycle and negative slope. Market direction: Intermediate – Sell. Current – Sell/Sell.

Agriculture (DBA) ETF closed at 18.68 with a huge bearish candle below its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 0.706. BuySellTimer is in a negative cycle. TSI is in a positive cycle and negative slope. Market direction: Intermediate – Sell. Current – Sell/Sell.

Commodities (DBC) ETF closed at 17.70 with a bearish candle below its 8 EMA and 21 EMA and above its 50 SMA. Daily trading range was 0.19. BuySellTimer is in its negative cycle. TSI is in a positive cycle and negative slope. Market direction: Intermediate – Sell. Current – Sell/Sell.

Bonds
Bond futures (/ZB) closed at 143’06 with a bearish candle below its 8 EMA and 50 SMA and on its 21 EMA. Daily trading range was 0.9375. BuySellTimer is in its positive cycle. TSI is in its positive cycle and positive slope. Market direction: Intermediate – Buy. Current – Buy/Buy.

High Yield bond ETF (HYG) closed at 85.37 with a bullish candle below its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 0.185. BuySellTimer is in a negative cycle. TSI is in a negative cycle and negative slope. Market direction: Intermediate – Sell. Current – Sell/Sell.

Currencies
The dollar index ($DXY) closed at 94.036 with a hammer candle on its 8 EMA and above its 21 EMA and 50 SMA. Daily trading range was 0.53. TSI is in a positive cycle and negative slope. Market direction: Intermediate – Buy. Current – Buy/Buy. Negative divergence.

EUR/USD closed at 1.1697 with a bullish candle above its 8 EMA and below its 21 EMA and 50 SMA. Daily trading range was 0.0086. TSI is in a negative cycle and positive slope. Market direction: Intermediate – Sell. Current – Neutral/Buy.

USD/JPY closed at 109.80 with a bullish candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 0.479. TSI is in a positive cycle and positive slope. Market direction: Intermediate – Sell. Current – Sell/Sell.

6S(Swiss Franc) – closed at 1.013 with a low closing doji candle above its 8 EMA and 21 EMA and below its 50 SMA. Daily trading range was 0.0065. BuySellTimer is in a positive cycle. TSI is in a negative cycle and positive slope. Market direction: Intermediate – Buy. Current – Buy/Buy.

Relative Strength – Sectors
On a monthly lookback, the relative strength order of the ETFs that are outperforming the S&P 500 are XLK, XLI and XLY.

On a 3-monthly lookback, the relative strength order of the ETFs that are outperforming the S&P 500 are XLE, XLK, XLY and XLB respectively.

Market Internals
Market sentiment is bullish. Market breadth is sloping upwards showing nett gainers to losers. Accumulation/ Distribution is flat. Skew is at 132.70. Vix is at 12.74 and Vix futures is at 14.06.

The Week Ahead
Market internal is showing strength. Market sentiment is rather bullish. Skew is normal. Vix has come down to below 13 but Vix futures is much higher. The market is expecting some volatility in the near future. The source of the volatility is likely to be from Europe. The prognosis is for the market to grind upwards and also be on the lookout for market turnaround due to the news event.

Futures Summary(daily chart):
ES – Intermediate Buy. Short term Buy/Buy.
NQ – Intermediate Buy. Short term Buy/Buy. Weekly Squeeze.
YM – Intermediate Sell. Short term Buy/Buy. Negative Divergence. Daily and Weekly Squeeze.
GC – Intermediate Sell. Short term Sell/Sell. Weekly Squeeze. Positive divergence.
CL – Intermediate Sell. Short term Sell/Sell.

 

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