TSX Composite Index – Market Direction Outlook and Strategy Notes For Mar 18 2016

Mar 17, 2016 | TSX Composite Index - Canadian Stock Market Outlook

For FullyInformed members here is the TSX Composite Index Outlook for Friday Mar 18 2016.

Thursday saw the TSX Composite Index open at the 13500 level and push higher from the open. With oil moving higher and breaking through $40 a barrel (WTI), commodities climbing particularly gold and financials moving higher the TSX roared through the 13500 level and pushed sellers aside on above average volume.

TSX Composite Index Rises 143.17 Points

The TSX Composite Inex rose 143.17 points for a gain of 1.06% on the day. The Canadian dollar rose and the US dollar continues its decline. The drop in the US dollar is assisting in driving back up commodity prices which last year it was busy pummeling. All of last year I wrote in the TSX Composite Index outlook that until the US dollar stopped rising, commodity prices were going to continue their decline. That now is over as the US dollar is set to pullback ahead of the dovish Fed stance on interest rates.

TSX Composite Index One Minute Chart

The action today in the TSX Composite Index can be seen in the one minute intraday chart below. The morning rally pushed through resistance at 13500 on big volume. Sellers were taken by surprise as buyers snapped up stocks and kept moving higher. The remaining short-sellers were scrambling especially in Canadian Bank Stocks which were strong again on Thursday.

By the afternoon the TSX Composite Index had broken through the 13600 level and was pushing to the afternoon high of 13685.45. The last hour of trading saw the index slip but it was still a very strong finish.

TSX Composite Index for Mar 16 2016

TSX Composite Index Momentum

Momentum at the open was positive but as sellers fled and short-sellers covered momentum rose dramatically in the morning. It as the last hour and half of trading that saw momentum pullback and turn mildly negative.

TSX Composite Index Market Outlook for Mar 18 2016

The rest of the TSX Composite Index looks in-depth at the technical indicators, the advance decline numbers and the outlook for tomorrow. There are also trade suggestions, the market direction portfolio update and a look at the medium term trend.

FullyInformed Members can login through this link to read the latest market direction outlook for the TSX Composite Index or they can sign in to the full members site here. Non-members can join here or review the benefits of a membership.

Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.