The Bottom Line

Look for the recovery in North American equity markets to continue this week. However, strength offers an opportunity to reduce equity positions. Special situations exist, most notably in the biotech and medical device sectors.

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5 of 45 Charts Below:

The VIX Index fell 20% last week. Short term momentum indicators are overbought and have started to trend down. This is a bullish intermediate indicator for equity markets.

Silver gained $0.76 per ounce (4.30%) last week. Short term momentum indicators are in neutral territory.

The Canadian Dollar added 0.50 cents U.S. last week. Nice recovery from long term support at 92.16 and intermediate support near 93.15! Short term momentum indicators are oversold: Stochastics have recovered above the 20% level, RSI have improved above the 30% level and MACD is close to recording a positive cross over from an oversold level. Look for the Canadian Dollar to move higher this week if the Bank of Canada raises the overnight rate.

The TSX Composite Index added 150.09 points (1.30%) last week. Intermediate trend is up. Resistance is at 12,321.76. The Index bounced back above its 200 day moving average last week. Short term momentum indicators have bottomed: Stochastics have recovered from the 20% level. RSI recovered from the 30% level. MACD is close to completing a positive cross over from an oversold level. Strength relative to the S&P 500 Index remains positive. Upside potential is to its 50 day moving average currently at 11,997.11.

The S&P 500 Index added 1.72 points (0.16%) last week. Intermediate trend remains up. Resistance is at 1,219.80. The Index briefly broke support at 1,044.50, but recovered strongly. Short term momentum indicators are bottoming: Stochastics and RSI recorded buy signals. MACD is close to recording a buy signal. Upside potential is to its 50 day moving average currently at 1,163.21.

Read more and view all 45 Charts HERE