The Swiss index seems to be running out of steam after reaching a historic high in September (10100 points), despite a Swiss currency still very popular with investors, against a backdrop of uncertainty surrounding the US-China trade war.  


Since the beginning of September, the SMI has dropped to 1.38%, driven by the underperformance of financials such as Crédit Suisse (-7.94%) and Swiss Life (-4.21%). Richemont and Swatch lost 9% and 8% respectively, accentuating the negative trend in luxury. On the other hand, Roche (+6%) posted the best performance over the period.


Graphically, the bullish channel initiated in August has tested the 10,100-point resistance several times, but the index does not seem to venture beyond this line and is currently moving below its moving averages at 20, 50 and 100 days. In the current channel, the index is close to a first level of support of 9715 points. The dominant should remain neutral but a break does not seem to be a scenario to be excluded given the current volatility that would pave the way for a new downward target at 9530 points.