Bursa KLCI

27 July 2018 – Weekly Review- Indices finally skewed!


Indices (Weekly chart)
Dow Transportation closed at 10957.18 with a bullish candle above its 8 EMA, 21 EMA and 50 SMA. Weekly trading range was 430.84. Intermediate Cycle is positive with falling slope. Short term cycle is positive with rising slope. Market direction:- Neutral. It is in a weekly Squeeze.

Dow Industrial closed at 25451.06 with a bullish candle above its 8 EMA, 21 EMA and 50 SMA. Weekly trading range was 603.91. Intermediate Cycle is positive and flat. Short term cycle is positive and rising. Market direction:- Buy. It is in a weekly Squeeze.

Russell 2000 closed at 1663.3399 with a bearish candle on its 8 EMA and above its 21 EMA and 50 SMA. Weekly trading range was 46.40. Intermediate Cycle is positive and rising. Short term cycle is positive and falling. Market direction:- Neutral.

Nasdaq 100 closed at 7296.7809 with a low closing spinning top doji candle above its 8 EMA, 21 EMA and 50 SMA. Weekly trading range was 256.07. Intermediate Cycle is positive and rising. Short term cycle is positive and rising. Market direction:- Buy.

S&P 500 closed at 2818.82 with a small bullish candle above its 8 EMA, 21 EMA and 50 SMA. Weekly trading range was 52.89. Intermediate Cycle is positive and rising. Short term cycle is positive and rising. Market direction:- Buy.

Metals and Commodities (Weekly charts)
WTI Crude oil futures (CL) closed at $69.04 per barrel with a small spinning top doji candle below its 8 EMA and above its 21 EMA and 50 SMA. Weekly trading range was 2.36. Intermediate Cycle is positive and falling. Short term cycle is positive and falling. Market direction:- Buy.

Gold futures (GC) closed at 1232.6 with a spinning top doji candle below its 8 EMA, 21 EMA and 50 SMA. Weekly trading range was 18.4. Intermediate Cycle is negative and falling. Short term cycle is negative and falling. Market direction:- Sell.

Agriculture (DBA) ETF closed at 17.47 with a low closing doji candle below its 8 EMA, 21 EMA and 50 SMA. Weekly trading range was 0.433. Intermediate Cycle is negative and falling. Short term cycle is negative and falling. Market direction:- Sell.

Commodities (DBC) ETF closed at 17.25 with a bullish candle below its 8 EMA and on its 21 EMA and above its 50 SMA. Weekly trading range was 0.43. Intermediate Cycle is positive and falling. Short term cycle is negative and falling. Market direction:- Sell.

Bonds (Weekly charts)
Bond futures (/ZB) closed at 143’01 with a bearish candle below its 8 EMA, 21 EMA and 50 SMA. Weekly trading range was 1.875. Intermediate Cycle is negative and rising. Short term cycle is negative and falling. Market direction:- Neutral.

High Yield bond ETF (HYG) closed at 85.91 with a bullish candle above its 8 EMA and 21 EMA and below its 50 SMA. Weekly trading range was 0.42. Intermediate Cycle is negative and rising. Short term cycle is negative and rising. Market direction:- Buy.

Currencies (Weekly charts)
The dollar index ($DXY) closed at 94.669 with a bullish candle above its 8 EMA, 21 EMA and 50 SMA. Weekly trading range was 0.826. Intermediate Cycle is positive and rising. Short term cycle is positive and falling. Market direction:- Neutral.

EUR/USD closed at 1.1661 with a bullish candle below its 8 EMA, 21 EMA and 50 SMA. Weekly trading range was 0.013. Intermediate Cycle is negative and falling. Short term cycle is negative and rising. Market direction:- Buy.

USD/JPY closed at 111.03 with a hammer candle above its 8 EMA, 21 EMA and 50 SMA. Weekly trading range was 0.953. Intermediate Cycle is positive and rising. Short term cycle is positive and rising. Market direction:- Buy.

6S (Swiss Franc) closed at 1.0090 with a bearish candle below its 8 EMA, 21 EMA and 50 SMA. Weekly trading range was 0.0083. Intermediate Cycle is negative and falling. Short term cycle is negative and rising. Market direction:- Sell.

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

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

Market Internals
Market Sentiment is bullish. Market Breadth continues to slope downwards showing more losers than gainers. Market Volume is sloping upwards showing accumulation. Skew is at 144.57. Vix is at 13.03 and Vix futures 14.35.

The Week Ahead
Market internals is showing mixed signal. Vix has risen to be above 13 and Vix futures remains the same above 14. Near term volatility has risen. Skew remains above 142 which means that market participants continue to have bearish view of the market. The prognosis is for another pullback next week but the longer term bullish case remains.

Futures (Weekly Chart):
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/Rising. Market direction – Buy. Weekly Squeeze. Fractal Bias – Bullish.
RTY – Intermediate Cycle – Positive/Falling. Current – Positive/Falling. Market direction – Neutral. Fractal Bias – Bullish.
GC – Intermediate Cycle – Negative/Falling. Current – Negative/Falling. Market direction – Sell. Fractal Bias – Bearish.
CL – Intermediate Cycle – Negative/Falling. Current – Negative/Falling. Market direction – Buy. Fractal Bias – Buy.

Stocks Buy Watchlist
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Penny Stocks BreakOut
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To YOUR wealth!

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