INK Canadian Insider Index tumbles alongside markets ahead of US election

Ad blocking detected

Thank you for visiting We have detected you cannot see ads being served on our site due to blocking. Unfortunately, due to the high cost of data, we cannot serve the requested page without the accompanied ads.

If you have installed ad-blocking software, please disable it (sometimes a complete uninstall is necessary). Private browsing Firefox users should be able to disable tracking protection while visiting our website. Visit Mozilla support for more information. If you do not believe you have any ad-blocking software on your browser, you may want to try another browser, computer or internet service provider. Alternatively, you may consider the following if you want an ad-free experience.

Canadian Insider Ultra Club
$500/ year*
Daily Morning INK newsletter
+3 months archive
Canadian Market INK weekly newsletter
+3 months archive
30 publication downloads per month from the PDF store
Top 20 Gold, Top 30 Energy, Top 40 Stock downloads from the PDF store
All benefits of basic registration
No 3rd party display ads

* Price is subject to applicable taxes.

Paid subscriptions and memberships are auto-renewing unless cancelled (easily done via the Account Settings Membership Status page after logging in). Once cancelled, a subscription or membership will terminate at the end of the current term.

Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. Last week, the Index fell 58.1 points or 5.2% to 1050.80.

MACD, our long-term momentum indicator, tumbled 9.41 points to -9.92. Our short-term momentum indicator, RSI, plunged 36% or 22.17 points to 40.02. MACD is a longer-term buy/sell indicator. It is most useful when it's trending in the same direction as RSI for extended periods. Indeed, MACD has been stuck in a tight channel, for the most part between +10 to -10, over the past few months and, not surprisingly, the INK CIN has not been able to break out. What's more, MACD has been making lower highs and lower lows since mid-August, and a bullish long-term momentum signal would only be generated if it can break above the line at about 15-20.

In addition, our short-term indicator, RSI, finds itself near its recent lows of late September (37.55) which saw the Index respond by rebounding strongly. September's low RSI reading is only exceeded by the March crash which registered a sub-20 RSI capitulation that sparked a multi-month rally. With RSI and MACD declining so sharply, investor sentiment has taken a beating which is constructive in making the case for an advance.

Support is now at 1050.21 (lower Bollinger band) and 1080. Resistance is at 1110 and 1129 (upper).

As far as performance goes, the INK Canadian Insider Index beat the SPDR S&P 500 ETF (SPY*US) (-5.56%), platinum (-6.43%), and crude oil –10.19% but lagged gold (-1.33%), copper (-2.6%), and silver (-4.17%).

The INK CIN, world markets, and metals are now all oversold after sinking ahead of the uncertainty of the US election this week. Until we see the dust clear and a clear winner, it is best to trade lightly. The fact that the Index has pierced its lower Bollinger band and that its RSI trades near September lows provides conditions for a potential reversal, but only if the election chaos avoids bringing further weakness along with it.

The INK Canadian Insider Index is used by the Horizons Cdn Insider Index (HII).

Sportswear free shipping | Nike Release Dates

Join the discussion in INK Chat!