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Established in 2004, The Technical Analyst brings institutional technical research and strategy ideas to the global financial markets, supported by regular events and training courses. With a readership comprising traders, fund managers and hedge funds, we report on and publish technical analysis, market outlooks and trading strategies from banks, brokers and academics. We also host annual awards that celebrate excellence in technical analysis research and trading software.
The Technical Analyst is a division of Global Markets Media Ltd and was voted Runner-Up ‘Most Innovative Media Outlet’ at the State Street Institutional Press Awards in 2008, 2011 and 2012. Source
Dow Jones at major support level The Dow Jones Industrial Average (DJIA) is the most important index to watch right now, according to Terence Brogan, Co-Head Market Technician of Brogan Group Equity Research. Brogan notes how the DJIA, which is representative of the most liquid part of the stock market, has been stronger than all other markets for several weeks.
S&P rallies are fizzling out The secondary reaction in the S&P 500 appears to be rolling over, says Robert Colby, Chief Investment Strategist at Robert W. Colby Asset Management. The S&P 500 fell 3.37% last week and is now down 17.45% year-to-date (as at 12 December 2022). Colby is sceptical of short-term rally attempts, which are typical of bear markets.
USD remains under threat The USD remains under threat, according to David Sneddon and his team at Credit Suisse in London. Sneddon says that the aggressive collapse in the US Dollar Index (DXY) has already seen it fall to test (and hold for now) the key support cluster at 105.50/104.64, which comes from i) the rising 200-day moving average, ii) 38.2% Fibonacci retracement of the 2021 to 2022 uptrend and iii) the August low (see Chart).
Trading the bear market rally After the best month for the Dow Industrials since 1976, how long will this rally last? Is it here to stay and develop further or is it just a bear market rally that will fizzle out? IGTV’s Jeremy Naylor caught up with Ron William, technical analyst from RW Advisory, to explore the “Halloween Effect”, the midterm US elections and much more. Watch the full interview.
CQG, a leading global provider of technology solutions for market makers, traders, brokers, commercial hedgers and exchanges, and NUTS Finance, a blockchain development lab, have launched “Optio Research”, a state-of-the-art Web3-based innovation lab focused on developing decentralized cryptocurrency infrastructure and trading solutions for institutional investors.
CAD/JPY rally expected The Ichimoku Cloud is supporting a CAD/JPY rally as a continuation pattern forms, says George Davis, Chief Technical Strategist at RBC Capital Markets. Davis is expecting CAD/JPY to target just below the 116.00 level (see Chart). His rationale is: The uptrend in CAD/JPY began to gather momentum in early March in response to a hawkish pivot from the FOMC.
Trigger close for European Cyclicals outperformance European Cyclical stocks look set for a period of outperformance, says David Sneddon and his team at Credit Suisse in London. Sneddon points out that the European Cyclical (non-Financial)/Defensive ratio is close to establishing a head-and-shoulders base.
Investment giant Fidelity is planning a further expansion into cryptocurrency, says Marcus Sotiriou, Analyst at publicly listed digital asset broker GlobalBlock. Sotiriou writes: As Bitcoin continues to crab sideways, Fidelity Digital Assets prove their optimism about the long term prospects of the crypto industry. The Digital Assets unit of the investment giant unit is doubling down on hiring, as they plan to add another 100 new staff over the next six months.
Utilities and Staples plummet Utilities and Staples have fallen hard in the US sector rankings since the Summer, according to Terence Brogan, Co-Head Market Technician of Brogan Group Equity Research. Brogan has looked at the Sector Money Flow Ranking as of 18 October versus his last ranking on 25 August (see Table below). Sector Money Flows are based on breadth, i.e. the number of stocks with positive money flow.
J.P. Morgan’s latest survey of its clients shows a bearish bias towards equities and suggests they are hoping to buy into a decline over the short-term. Most of their clients who answered the survey* said they were bearish (Figure 1) and 70% expected the S&P 500 to reach 3250 before 4000 (30%). However, a majority (62%) said they are likely to increase their equity exposure over the coming days and weeks (Figure 2).