Bursa KLCI

27 August 2018 – Indices trend ever higher

Indices
Dow Transportation closed at 11412.77 with a bullish marubozu candle on its 8 EMA and above its 21 EMA and 50 SMA. Daily trading range was 149.66. Intermediate Cycle is positive and rising slope. Short Term Cycle is positive and rising slope. Market direction – Buy. Fractal Bias – Bullish.

Dow Industrial closed at 26049.64 with a bullish marubozu candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 184.86. Intermediate Cycle is positive and rising slope. Short Cycle is positive and rising slope. Market direction – Buy. Fractal Bias – Bullish.

Russell 2000 closed at 1728.4057 with a inverted hammer candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 10.3. Intermediate Cycle is positive and rising. Short Cycle is positive and rising. Market direction: Buy. Fractal Bias – Bullish.

Nasdaq 100 gapped up and closed at 7559.13 with a bullish marubozu candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 48.74. Intermediate Cycle is positive and rising slope. Short Cycle is positive and rising slope. Market direction: Buy. Fractal Bias – Bullish.

S&P 500 gapped up and closed at 2896.74 with a marubozu candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 13.56. 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 $68.92 per barrel with a bullish marubozu candle above its 8 EMA and 21 EMA and on its 50 SMA. Daily trading range was 0.67. Intermediate Cycle is negative and rising slope. Short Cycle is positive and rising slope. Market direction: Buy. Fractal Bias – Bullish.

Gold futures (GC) closed at 1217.5 with a small bullish candle above its 8 EMA and 21 EMA and below its 50 SMA. Daily trading range was 9.5. Intermediate Cycle is negative and rising slope. Short Cycle is positive and rising slope. Market direction: Buy. Fractal Bias – Bearish.

Agriculture (DBA) ETF closed at 17.18 with a bullish candle on its 8 EMA and below its 21 EMA and 50 SMA. Daily trading range was 0.23. Intermediate Cycle is negative and falling slope. Short Cycle is negative and rising slope. Market direction: Neutral. Fractal Bias – Bearish.

Commodities (DBC) ETF closed at 17.27 with a small bullish candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 0.06. Intermediate Cycle is negative and rising slope. Short Cycle is positive and rising slope. Market direction: Buy. Fractal Bias – Bearish.

Bonds
Bond futures (/ZB) closed at 145’04 with a bearish candle on its 8 EMA and above its 21 EMA and 50 SMA. Daily trading range was 0.8437. Intermediate Cycle is positive and rising slope. Short Cycle is positive and falling slope. Market direction: Buy. Fractal Bias – Bullish.

High Yield bond ETF (HYG) closed at 86.41 with a doji candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 0.09. 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.

Currency
The dollar index ($DXY) closed at 94.758 with a bearish candle below its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 0.613. Intermediate Cycle is positive and falling slope. Short Cycle is negative and falling slope. Market direction: Sell. Fractal Bias – Bearish.

EUR/USD closed at 1.1677 with a bullish candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 0.0099. Intermediate Cycle is negative and rising. Short Cycle is positive and rising. Market direction: Buy. Fractal Bias – Bullish.

USD/JPY closed at 111.07 with a bearish candle above its 8 EMA and 21 EMA and on its 50 SMA. Daily trading range was 0.412. Intermediate Cycle is negative and rising slope. Short Cycle is positive and rising slope. Market direction: Buy. It is in a Squeeze. Fractal Bias – Bearish.

6S (Swiss Franc) – closed at 1.0224 with a bullish candle above its 8 EMA, 21 EMA and 50 SMA. Daily trading range was 0.006. Intermediate Cycle is positive and rising. Short Cycle is positive and rising. Market direction: Buy. It is in a weekly Squeeze. 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, XLB, XLV, XLY, XLI and XLE.

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

Market Internals
Market sentiment is Bullish. Market breadth is rising showing more gainers to losers. Volume Accumulation/ Distribution is rising and shows nett accumulation. Skew is at 144.85. Vix is at 12.16 and Vix futures is at 14.05.

The Week Ahead
Market internals continue to show strength as the indices trend upwards. SKEW continues to be elevated. Vix is above 12 is reasonably low and Vix futures is above 14 which means that the market is forecasting near term volatility. The prognosis is for a bullish bias in the indices.

To YOUR wealth!

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