A 5 chart sampling and the Bottom Line taken from the comment plus 45  Charts Don Vialoux analyses in this great Monday comment HERE

The Bottom Line
Use weakness into October and November as an opportunity to acquire attractive equities and ETFs. Please be patient and wait until technical indicators are showing signs of bottoming following a short term correction. Preferred selections are economically sensitive sectors such as China, technology, consumer discretionary, materials, Canadian financial services, lumber and industrials. More information on the Industrial sector is offered below.

The S&P 500 Index added 6.89 points (0.59%) last week. Intermediate trend remains up. Support is at 1,039.70. Resistance is at 1,219.80. The Index remains above its 50 and 200 day moving averages. Short term momentum indicators are overbought, have peaked and are rolling over. Intermediate downside risk is to its 50 and 200 day moving averages currently at 1,122.

The TSX Composite Index slipped 7.89 points (0.06%) last week. Intermediate trend remains up. Support is at 11,065.53. Resistance may be forming at 12,710.19 set on Wednesday October 13th. Short term momentum indicators are overbought, have peaked and are starting to roll over. Strength relative to the S&P 500 Index is mixed, but is showing early signs of turning negative. Intermediate downside risk during a correction is to its 50 day moving average currently at 12,149.74.

The U.S. Dollar Index advanced 0.47 last week. The outside reversal pattern completed on October 15th remains intact and implies continuation of a short term recovery. Short term momentum indicators are trending higher and confirmed significance of the pattern. A recovery to its breakdown level at 80.08 is a reasonable upside move within an intermediate downtrend.

Gold dropped $40.50 U.S. per ounce last week. Resistance may be forming at $1,387.10. Short term momentum indicators are overbought and are trending lower. Short term downside risk is to its 50 day moving average currently at $1,285.69.

Crude oil was virtually unchanged last week. It has declined 3.5% since its high on October 7th. Short term momentum indicators are overbought and are trending lower. ‘Tis the season for crude oil to move lower until January!

The 5 chart sampling and the Bottom Line taken from the comment plus 45  Charts Don Vialoux analyses in this great Monday comment HERE