INK Canadian Insider Index suffers 20% hit as markets and metals tumble

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 joined world markets in a steep plunge that reacted to the deepening economic impact from the coronavirus which has now been declared a worldwide pandemic. The Index fell 216.27 points or 20% and ended the week at 870.41, a level not seen since the 2016 market panic.

MACD fell a whopping 26.52 points to -36.6. RSI fell 3.24 to 24.76 (and sunk as low as 12.97). What's more, that MACD reading and the 12.97 low in RSI are the lowest momentum readings ever registered in the INK CIN's history.

Support moves down to 800 and 810. Resistance is at 880 and 900.

As far as performance goes, the Index beat slip-sliding crude oil (-23.13%) for the second week in a row. However, the INK CIN did underperform silver (-16.01%), the SPDR S&P 500 ETF (SPY*US) -9.46%), gold (-9.31%), and the star of the group, copper, which fell just 3.77%.

The relative strength in copper we noted over the last couple of weeks may not have prevented markets and metals from their panicked plunge but its strength in comparison to them was once again noteworthy last week. In the weeks ahead, the continued relative outperformance of copper bears close scrutiny, for the base metal underpins the economy and remains a leading inflationary indicator.