Russel 200 CRB Index and Nasdaq Composite Indices technical analysis



Russel 2000
The Russel 2000 index is leading the way down and lagged the Dow in its move to new highs recently. The rollover in prices from record optimism for US stocks marks a point at these highs that maybe important. In other words an important Medium term top may be in place for US stocks. There is also a major divergence at the highs on the RSI as momentum was lost



CRB Index
The commodity index started wave (c) of B down. The failure to breakout into wave C of larger degree makes this the best case. Commodity prices are reacting accross the board but this index has a larger component of energy. We have to give it time for wave (c) down to complete.



Nasdaq Composite
I have discussed how the arithmetic scale has been better for US indices since 2009 to fit a channel into the rise. So the Nasdaq composite is not only at the upper end but at the point where wave 5=1, and where wave 3=1.618 times wave 1. This is quite a perfect fractal, textbook to say the least rare, and the Sensex had the same fractal fit for the 1999-2000 bull market. Time to see whether wave 5 terminates at this Fibonacci projection as it logically should.




Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic & international clients. Views expressed in this article are purely of the author - Mr Rohit Srivastava - a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd

Popular posts from this blog

Dow Long Term Outlook

Image
Elliott Wave analysts get blamed for having marked the Y2K top as the end of the 5th wave which was probably just the 4th. This is an occupational hazard. The time frame involved means that if you are wrong then its years worth in price. Still that does not diminish the importance of knowing where you are in the Fractal. Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic & international clients. Views expressed in this article are purely of the author - Mr Rohit Srivastava - a leading technical analyst. Visit www.adamsmith.tv for services offered by Adam Smith Associates Pvt Ltd
Read more

Trade Finance News and Trends

Trade finance modernization turns towards blockchain A study of European treasurers by working capital fintech C2FO finds that 75% are focusing on investing in trade finance technology in 2017. Colin Sharp, senior vice-president, EMEA at C2FO, says the shifting macroeconomic environment is pressuring corporates to refocus their efforts on trade finance: “Treasurers are facing a lot of uncertainty, both from the US and around Brexit. This is putting stress on the supply chain, with demand increasing and decreasing. Treasures want the ability to use their assets to make returns and give some certainty. Source: https://www.euromoney.com/article/b12khnzp4pq9p5/trade-finance-modernization-turns-towards-blockchain --------------------------------------------- ICC Academy unveils new e-course on digital trade finance and fintechs The educational arm of the International Chamber of Commerce (ICC), the ICC Academy, has launched an advanced-level e-course entitled “Digital Trade Financ
Read more

Adam Smith Associates - Soy Meal should move from 310 to 420

Image
Soy Meal Continuous has been consolidating for 3 months in a narrow range after the initial move up. The next move higher may now have started. Yesterdays move broke out of the trend line of the highs and closed above it. Soy prices should move from 310 to 420 near the previous high in the 3rd wave on the CBT exchange. Staying above the 315 and 325 short term supports should be bullish for Soy. Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic & international clients. Views expressed in this article is purely of the author - Mr Rohit Srivastava - a leading technical analyst.
Read more