Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. The INK Canadian Insider index began last week with a continued correction that saw it successfully retest its 50-day moving average at 1280 before catapulting as high as 1303.10. However, the 1300 level proved too challenging to overcome for an extended period, and the Index pulled back to end the week at 1293.82 for a modest loss of 2.71 points.
Reflecting this weakness were the Index's momentum indicators. RSI receded 2.14 points to 49.11 and MACD fell 1.01 to -3.27. MACD, which remains on a sell signal, looks like it may need a couple of weeks to move back into bullish configuration.
Support is at 1293 and 1280. Resistance is at 1305 and 1310.
The INK CIN is continuing to spend time below 1300. Given that, bulls want the Index to either hold at present levels or rise to avoid building further resistance at current levels. Looking out a week further, stocks and commodities are certain to react to the FOMC on June 12-13. Right now, I am looking at that as the catalyst that terminates the multi-week basing pattern for many stocks and commodities and finally kicks them into rally mode.
