The INK Canadian Insider Index bounces back 5.7%, along with markets, metals

Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. Last week, after a two-week 40% panic washout, the INK Canadian Insider Index bounced back 39.72 points or 5.7% to close at 732.63.

MACD shot up over 46 points to close in the black at 6.46. RSI rose 14.22 points or 72% to 34. Our note that the positive divergence in RSI which began to slope higher even as price fell, proved prescient.

Support moves up to 685 and 690. Resistance moves to 760 and 800.

As far as performance goes, the Index beat copper (0.02%) as well as outpacing crude oil (-4.95%) for the fourth week in a row. However, the INK CIN did underperform the SPDR S&P 500 ETF (SPY*US) (10.76%), gold (11.42%), and soaring silver (17.35%).

Markets and metals began to bounce back last week, providing investors with some relief. Of course, we will need to see crude oil join that rebound if markets are to enjoy any kind of sustained rebound, especially since oil has been on a nasty non-stop plunge since it topped in early January. So, one key is to watch and see if oil can start to carve out a bottom and a second key is to see how markets react to news, especially bad news. Sentiment is very poor as we mentioned last week and, going forward, should we see markets rally on bad news or on 'less bad news' then we might deduce markets have made an important turn for the better.

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