Bursa KLCI

24 August 2018 – Weekly Review – The longest bull market continues uptrend


Indices (Weekly chart)
Dow Transportation closed at 11284.99 with an inverted hammer candle above its 8 EMA, 21 EMA and 50 SMA. Weekly trading range was 241.56. Intermediate Cycle is positive with rising slope. Short term cycle is positive with rising slope. Market direction:- Buy. Fractal Bias – Bullish.

Dow Industrial broke out and closed at 25790.35 with a small spinning top doji candle above its 8 EMA, 21 EMA and 50 SMA. Weekly trading range was 280.80. Intermediate Cycle is positive and rising slope. Short term cycle is positive and rising slope. Market direction:- Buy. Fractal Bias – Bullish.

Russell 2000 closed at 1725.6709 with a bullish candle above its 8 EMA, 21 EMA and 50 SMA. Weekly trading range was 36.8. Intermediate Cycle is positive and rising. Short term cycle is positive and rising. Market direction:- Buy. Fractal Bias – Bullish.

Nasdaq 100 closed at 7485.4041 with a bullish candle above its 8 EMA, 21 EMA and 50 SMA. Weekly trading range was 146.06. Intermediate Cycle is positive and rising. Short term cycle is positive and rising. Market direction:- Buy. Fractal Bias – Bullish.

S&P 500 closed at 2874.69 with a bullish candle above its 8 EMA, 21 EMA and 50 SMA. Weekly trading range was 25.54. Intermediate Cycle is positive and rising slope. Short term cycle is positive and rising slope. Market direction:- Buy. Fractal Bias – Bullish.

Metals and Commodities (Weekly charts)
WTI Crude oil futures (CL) closed at $68.52 per barrel with a bullish candle above its 8 EMA, 21 EMA and 50 SMA. Weekly trading range was 4.46. Intermediate Cycle is positive and falling slope. Short term cycle is positive and falling slope. Market direction:- Sell. Fractal Bias – Bullish.

Gold futures (GC) closed at 1212.3 with a bullish harami candle pattern below its 8 EMA, 21 EMA and 50 SMA. Weekly trading range was 25.9. Intermediate Cycle is negative and falling. Short term cycle is negative and falling. Market direction:- Sell. Fractal Bias – Bearish.

Agriculture (DBA) ETF closed at 17.04 with a bearish marubozu candle below its 8 EMA, 21 EMA and 50 SMA. Weekly trading range was 0.49. Intermediate Cycle is negative and falling. Short term cycle is negative and falling. Market direction:- Neutral. Fractal Bias – Bearish.

Commodities (DBC) ETF closed at 17.21 with a bullish candle above its 8 EMA, 21 EMA and 50 SMA. Weekly trading range was 0.56. Intermediate Cycle is positive and falling slope. Short term cycle is negative and falling slope. Market direction:- Neutral. Fractal Bias – Sell.

Bonds (Weekly charts)
Bond futures (/ZB) closed at 145’29 with a bullish marubozu candle above its 8 EMA and 21 EMA and below its 50 SMA. Weekly trading range was 1.3125. Intermediate Cycle is negative and rising slope. Short term cycle is positive and rising slope. Market direction:- Bullish. It is in a Squeeze. Fractal Bias – Bullish.

High Yield bond ETF (HYG) closed at 86.38 with a bullish candle above its 8 EMA and 21 EMA and below its 50 SMA. Weekly trading range was 0.38. Intermediate Cycle is negative and rising slope. Short term cycle is positive and rising slope. Market direction:- Buy. It is in a Squeeze. Fractal Bias – Bullish.

Currencies (Weekly charts)
The dollar index ($DXY) closed at 95.164 with a bearish candle on its 8 EMA and above its 21 EMA and 50 SMA. Weekly trading range was 1.468. Intermediate Cycle is positive and rising slope. Short term cycle is positive and falling slope. Market direction:- Buy. Fractal Bias – Bullish.

EUR/USD broke down and closed at 1.1623 with a bullish candle above its 8 EMA and below its 21 EMA and 50 SMA. Weekly trading range was 0.0245. Intermediate Cycle is negative and falling slope. Short term cycle is negative and rising slope. Market direction:- Neutral. Fractal Bias – Bearish.

USD/JPY closed at 111.29 with a bullish candle above its 8 EMA, 21 EMA and 50 SMA. Weekly trading range was 1.712. Intermediate Cycle is positive and rising. Short term cycle is positive and falling. Market direction:- Neutral. It is in a monthly Squeeze. Fractal Bias – Bullish.

6S (Swiss Franc) closed at 1.0188 with a bullish candle above its 8 EMA and 21 EMA and below its 50 SMA. Weekly trading range was 0.0161. Intermediate Cycle is negative and rising slope. Short term cycle is negative and rising slope. Market direction:- Neutral. Fractal Bias – Bullish.

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

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

Market Internals
Market Sentiment is bullish. Market Breadth is sloping upwards showing more gainers than losers. Market Volume is sloping upwards showing accumulation. Skew is at 148.20. Vix is at 11.99 and Vix futures 14.10.

The Week Ahead
Market internals are showing strength. Vix and Vix futures have been trending down as the indices trended upwards. Skew is elevated. The uptrend on the weekly chart continues. The prognosis is for the market to continue but selling pressure persists.

To YOUR wealth!

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