INK Canadian Insider Index tumbles along with markets

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 suffered a particularly hard correction as stocks around the world suffered their first major correction in the last year. The Index stumbled 43.23 points or 3.3%.

The Index's new support levels are 1252 and 1242. Resistance is at 1270 and 1278.

Our long-term momentum indicator MACD fell 5.2 points to -5.77. Fast and slow MACD lines melted, falling below 5 to close at 3.87 and -1.89. RSI plunged 48% or 28.46 points from 58.89 to 30.43, their most oversold since June 16, 2017.

While the INK CIN was sailing along happily the last few weeks, it couldn't make more than a nominal new high in the low 1300s. Similarly, its MACD long-term momentum indicators weren't able to make much headway above 5 to the 10 area which has provided a lot of resistance and a headwind, for many months. Hindsight is nice but what next? If past history is any indication, and I believe it is based on technicals as well as my own Alpha Signals, the INK CIN and stocks in general will be in line for a considerable rebound over the coming weeks. Indeed the last time the INK CIN hit 30 RSI, the Index bounced from 1147 to 1185, a move of 3.3%. Initially, we might see some choppy trading and volatility, but I believe traders will soon be able take advantage of a large rebound ahead of us.