Bursa KLCI

25 July 2018 – Indices surged upwards

Indices
Dow Transportation closed at 10893.29 with a big bullish engulfing candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 277.25. Intermediate Cycle is positive and rising slope. Short Term Cycle is positive and rising slope. Market direction – Buy. It is in a weekly Squeeze. Fractal Bias – Bullish.

Dow Industrial closed at 25414.10 with a bullish candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 319.19. Intermediate Cycle is positive and rising slope. Short Cycle is positive and rising slope. Market direction – Buy. It is in a weekly Squeeze. Fractal Bias – Bullish.

Russell 2000 closed at 1685.2033 with a hammer candle candle below its 8 EMA and on its 21 EMA and above its 50 SMA. Daily trading range was 10.38. Intermediate Cycle is positive and falling slope. Short Cycle is positive and falling slope. Market direction: Neutral. Fractal Bias – Neutral.

Nasdaq 100 closed at 7508.59 with a bullish marubozu candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 105.76. Intermediate Cycle is positive and rising slope. Short Cycle is positive and rising slope. Market direction: Buy. Fractal Bias – Bullish.

S&P 500 closed at 2846.07 with a bullish marubozu candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 30.3. Intermediate Cycle is positive and rising slope. Short Cycle is positive and rising slope. Market direction: Buy. Fractal Bias – Bullish.

Metals and Commodities
WTI Crude oil futures (CL) closed at $69.26 per barrel with a bullish candle above its 8 EMA and 50 SMA and below its 21 EMA. Daily trading range was 0.42. Intermediate Cycle is negative and falling slope. Short Cycle is negative and rising slope. Market direction: Buy. Fractal Bias – Neutral.

Gold futures (GC) closed at 1231.8 with a bullish candle above its 8 EMA and below its 21 EMA and 50 SMA. Daily trading range was 11.1. Intermediate Cycle is negative and rising slope. Short Cycle is negative and rising slope. Market direction: Buy. Fractal Bias – Bearish.

Agriculture (DBA) ETF closed at 17.67 with a bullish marubozu candle above its 8 EMA and 21 EMA and below its 50 SMA. Daily trading range was 0.19. Intermediate Cycle is negative and rising slope. Short Cycle is negative and rising slope. Market direction: Buy. Fractal Bias – Neutral.

Commodities (DBC) ETF closed at 17.32 with a bullish marubozu candle above its 8 EMA and 21 EMA and below its 50 SMA. Daily trading range was 0.19. Intermediate Cycle is negative and rising slope. Short Cycle is positive and rising slope. Market direction: Buy. Fractal Bias – Neutral.

Bonds
Bond futures (/ZB) closed at 142’22 with a bearish marubozu candle below its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 0.9687. Intermediate Cycle is negative and falling slope. Short Cycle is negative and falling slope. Market direction: Sell. Fractal Bias – Bearish.

High Yield bond ETF (HYG) closed at 85.93 with a bullish marubozu candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 0.23. Intermediate Cycle is positive and rising slope. Short Cycle is positive and rising slope. Market direction: Buy. It is in a weekly Squeeze.

Currency
The dollar index ($DXY) closed at 94.229 with a bearish candle below its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 0.523. Intermediate Cycle is positive and falling slope. Short Cycle is negative and falling slope. Market direction: Sell. It is in the Squeeze. Fractal Bias – Bearish.

EUR/USD closed at 1.1727 with a bullish candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 0.0074. Intermediate Cycle is negative and flat. Short Cycle is positive and rising. Market direction: Neutral. Fractal Bias – Neutral.

USD/JPY closed at 110.96 with a bearish candle below its 8 EMA, 21 EMA and above its 50 SMA. Daily trading range was 0.724. Intermediate Cycle is positive and falling slope. Short Cycle is negative and falling slope. Market direction: Sell. Fractal Bias – Bearish.

6S (Swiss Franc) – closed at 1.0129 with a bullish candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 0.0042. Intermediate Cycle is negative and rising slope. Short Cycle is positive and rising slope. Market direction: Buy. It is in a Squeeze. Fractal Bias – Bullish.

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

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

Market Internals
Market sentiment is bullish. Market breadth is sloping downwards showing more losers to gainers. Accumulation/ Distribution is sloping upwards showing nett accumulation. Skew is at 145.09. Vix is at 12.29 and Vix futures is at 14.11.

The Week Ahead
Market Internals are giving out mixed signals which means that the indices are going up but without conviction. Skew remains high. Vix is below 13 and Vix futures remains above 14 indicating that the market is pricing in near future volatility. The prognosis is for a continuing strength in the indices but with volatility.

ES – Intermediate Cycle – Positive/Rising. Current – Positive/Rising. Market direction – Buy. Fractal Bias – Bullish.
NQ – Intermediate Cycle – Positive/Rising. Current – Positive/Rising. Market direction – Buy. Fractal Bias – Bullish
YM – Intermediate Cycle – Positive/Rising. Current – Positive/Falling. Market direction – Buy. Weekly Squeeze. Fractal Bias – Bullish.
RTY – Intermediate Cycle – Positive/Falling. Current – Positive/Falling. Market direction – Sell. Fractal Bias – Neutral.
GC – Intermediate Cycle – Negative/Rising. Current – Negative/Rising. Market direction – Buy. Fractal Bias – Bearish.
CL – Intermediate Cycle – Negative/Falling. Current – Negative/Rising. Market direction – Buy. Fractal Bias – Neutral.

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