INK Canadian Insider Index sees momentum slashed

Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. The cooling off process which began after the Index hit its recent peak on June 8th (when RSI hit an overheated 79 reading) continued last week, as the Index dipped further, shedding 16 points or another 1.5%.

Last week, momentum could not move above 60 and, in fact, deteriorated. RSI tumbled 10 points from 59.45 to 49.78 or 16%. Interestingly, RSI hasn't traded under 60 for a full week since the late-March to mid-April timeframe. MACD, our slower moving momentum indicator, took a major haircut and fell from 13.36 to 6.13 or 54%. What's more, its fast blue line crossed down below its slower moving red line - often a sign of a negative momentum shift.

Minor support remains at 1040 (1038 is its 50-day moving average) and major support at 1027, while overhead resistance is at 1056 and 1076.

It's clear that the Index needs a major upturn over the next 7-10 days to hold above its 50-day moving average and to restore its positive momentum.

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