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$TSX Toronto Stock Exchange Poised for a Correction

It appears likely that the $TSX (S&P/TSX Composite Index) is headed back down to at least the 14962 area following the recent failure at the 2014 all-time highs. Note the large negative divergences that have been building & were recently confirmed with the PPO, MACD & RSI all turning back down following the recent failure at the 2014 highs. First chart below is a 2-day period chart spanning 4 years followed by a daily chart spanning 2 years showing the next potential support/downside target, should the $TSX fail to hold any test of the 14960ish resistance level.

$TSX 4 year, 2-day period Jan 31st

$TSX 4 year, 2-day period Jan 31st

The dashed lines on this 2-year daily chart represent my preferred scenario for the $TSX at this time although an impulsive & sustained break above the 2014 highs & more recent reaction high (upper-most horizontal line) would be bullish, especially once/if the negative divergences are taken out.

$TSX 2 year daily chart Jan 31st

$TSX 2 year daily chart Jan 31st

@joang

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Jan 31, 2017 12:12pm|Categories: Equity Market Analysis|Tags: , , |Comments Off on $TSX Toronto Stock Exchange Poised for a Correction