INK Canadian Insider Index dips, but bounces hard from 1059.22

Thank you for joining us in a weekly technical look at the mid-cap oriented INK Canadian Insider (CIN) Index. Last week, the INK Canadian Insider Index slid as far as 1059.22 for a 25 point decline before fighting back strongly, to finish the week down just 5 points at a close of 1077.52.

MACD rose strongly, gaining 3.6 points to finish in the black at 0.63. RSI gained 14% or 4 points to close at 32.8, and that was after reversing significantly from a low of 22.9.

Support is now at 1065 and 1075. Resistance is now at 1085 and 1090.

The Index is at a critical turning point, as it made a new 2018 low while dropping below last year's November low. On the positive side, the INK CIN reversed and rallied very strongly by week's end. In addition, positive divergences in its momentum indicators remain in place. Thirdly, the price of copper remains supportive for equities, as it rose by nearly one percent last week. 'Santa Claus' stock market rallies, when they occur, tend to begin around mid-December, and that is what I am looking for this year. Finally, it is also worth noting that seasonally, December and January are among the Index's strongest months.