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Interesting Chart of the TSX

2879 Views 5 Replies 4 Participants Last post by  moneymusing
If you know a little about reading charts you will be interested in having a look at - especially if you are a bear anyway :)

If we don't break above the resistance line the TSX could be headed lower.

The chart bears some resemblance to the summer of '08 just before the fall...
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I think a correction is overdue and I also believe we are in a secular bear market which will see the March lows and break through it.

Looking at the chart I would say we might have a double top and if it breaks through the 50 day then we will see a correction. After this we could see buying come back with all that sideline money coming in to chase the technical rally higher.
Thanks for the chart. Looks like it's already tested the 50day line once but bounced off of it. The range is consolidating which will likely mean a breakout in either direction is likely to occur at some point, but I don't know of any catalyst that would push the markets higher.

Gold is at highs, oil is at highs, CAD is falling every time Carney speaks. Although nothing stopping the speculators from driving the markets even higher though.

I'm mostly cash right now and waiting for that pull back to occur
I am thinking the TSX will pull back to around 10,500 with this correction - nothing too dramatic. Although when the GDP estimates come in for the US later this week things may change...
There's no significant reason for the market to overcorrect here, so maybe ten percent, maybe not. I wouldn't get too excited about a big need to sell, or at the prospect of a great buying opportunity. The easy money has already been made. There will be no "w" recovery this time.
Tangent: I've never used before. Nice site!
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