Bad news for Canadian stocks

Canada’s TSX 60 index broke through primary support at 650, confirming the primary down-trend signaled by 63-day Twiggs Momentum. Expect a decline to 580*. Recovery above 650 is unlikely at present, but would warn of a bear trap.

TSX 60 Index

* Target calculation: 650 – ( 720 – 650 ) = 580

2 thoughts on “Bad news for Canadian stocks

  1. Hal Martin says:

    I agree on the bearish call, without going in to the details.

    There is a rally under way that may come as a surprise since Colin’s trading diary.

    I note that price bounced off of 50% retracement of the rally since GFC. The oversold relief rally this week is destined to further selling imo.

    Looks like we all agree on the long term direction.

    ps
    I see the risistance to this rally at about 661, which is half way between the 38% retracement and the 50% retracement. Using an alternate method of price control changing hands, the 661 price resistance is also confirmed imo. If 661 resistance fails then 679 will be the next resistance target.

  2. Ali says:

    The weekly trend of the S&P 500 made two strong corrections since 2009 and these two corrections did not respect the zero line of the MACD. I am afraid that this whole rally is a bearish rally!!.

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