Hi, friends! Hope everyone’s week is off to a great start.
I wanted to spend some time today reviewing some interesting charts from the largest countries of North America — the U.S., Canada & Mexico.
united states
Let’s start at home, the United States.
Here’s the S&P 500 ($SPX). We finally got a daily close above the $3,957 level that has been our target since I began writing. IF we can hold this level, I think we can see $4,136 (not shown on the chart) and then $4,519. Crazy to think, right?
The $3,957 level is the 3.618 Fibonacci extension level from the Great Financial Crisis. There are important areas of strength and weakness but the overall picture is positive above there. Strength continues to be in the cyclical, value-oriented areas of the market, rather than the old leaders (tech).
oh, canada
Canada was one of the better charts I highlighted in the wanderlust post. Quite the break of a downtrend here. $EWC may need to consolidate its recent gains but looks great overall and targets old all-time highs (“ATHs”) at $36.42 and then the $44 extension from the early 2000’s. $30.25 is support on the downside.
Why is Canada doing so well? If we look at the $EWC information on the iShares website it’s more obvious — a healthy overweight to sectors currently in favor: financials, energy, materials, and industrials.
mexico
Last, but not least, are our neighbors to the south in Mexico. In the wanderlust post I recommended avoiding $EWW until it broke and held through the downwards trendline that began in 2014. The weekly chart below shows that long-term downtrend. The second chart is a zoomed in daily chart. We are testing that line again and $44.8 looks like a good level to trade a breakout against. I’d be quite bullish if they can push through.
Mexico also has an interesting, less tech-heavy exposure relative to the U.S. That information can be found here.
wrapping up
The charts across North America look pretty darn good. Nothing to be bearish about as long as the levels outlined here hold up. Outside of a few specific markets around the world (e.g. China), there is a lot of strength out there.
Let me know what you think.
Cheers!