Swiss Market Index (CH)

Although fairly neutral on the near term and being a big outperformer versus the other European markets, the outlook for the SMI feels inevitably bearish. The combination of a major stock rout on a global level fits nicely in the negative weekly developments for the SMI.

Prices are topping out at the lower part of the cloud resistance while the longer term shows a major barrier (potential multi-year double top pattern) around 9500. Our focus is on the down side especially below 8790. Main levels to watch out for come in at 8495, 7940 (first projection) and the major cluster around 7585.

With stops above 9210 (near term) or 9610 (very conservative), this market offers excellent shorting opportunities.

  • Near term trend: negative
  • Long term trend: neutral/negative
  • Outlook: large and long-term reversal pattern
  • Strategy: short-entry
  • Support: 8790 / 8495 / 7940* / 7585
  • Resistance: 9210 / 9610
  • Outlook cancelled/neutralized above 9210 / 9610

Weekly chart Swiss Market Index 

9 April 2018

Prices are grinding lower on the neat term charts. Under performance versus other European markets is considerable. The longer term charts look especially weak; a large double top is unfolding while the daily trend is pressing towards the lower side of the cloud support. And still a daily recovery move does not occur. Below 8468 bearish sentiment speeds up quite a bit, opening the road towards minimally 7650.

We are keeping a bearish stance for the time being. Focus is on the main pivots around 7660<>7650 (1-3 months). Use the minor rallies (if they occur) to enter on the sell-side. Only above 8975<>8980 things cool down somewhat.

  • Near term trend: negative
  • Long term trend: neutral/negative
  • Outlook: large and long-term reversal pattern
  • Strategy: avoid r sell-rallies
  • Support: 8468 / 7650-
  • Resistance: 8980 / 9465+
  • Outlook cancelled/neutralized above 8980

Weekly chart Swiss Market Index