INK Canadian Insider Index falls 2.5%, outperforms US indices

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 gapped down along with other world markets and fell 31 points or 2.5% for a 5.8% loss in two weeks.

Support now moves down to 1200 and 1220. Resistance moves to 1250 and 1256.

Our long-term momentum indicator MACD fell 2.6 points or 45% to -8.36. RSI took its second consecutive hit of nearly 3 points or 10% to close at 27.57, its lowest reading in over a year. As we noted last week a tumble to 30 RSI last June led to a 3% rebound in the INK CIN within a few weeks. Investors who are patient this time around (with RSI even lower) are also likely to be served with an impressive rebound.

While the INK CIN did take a pounding just like most every index and equity this month - it did bounce strongly on Friday from the low 1200s to 1227. What's more, the INK Canadian Insider Index also outperformed the TSX which declined 3.66% and the S&P 500 Index which plunged 5.16%. In addition, one positive and surprising note is that the Venture Index, one of the most risk-oriented indices we track, managed to post a positive weekly gain of 0.21%. We'll be interested to see if Friday's rebound in the Index and formidable relative strength in the Venture Index might signal the start of a turnaround for Canadian equities.