My outlook for stocks on the Toronto Stock Exchange for Thursday was for the index to continue to advance but weakness could emerge. Today the TSX collapsed 194.08 for a loss of 1.25%. Point wise, this is the biggest drop since February 3 2014. The technical indicators have for some time now kept flashing overbought indicators and signals of weakness developing, but overall most of the indicators kept pointing to higher prices. It was the stochastic indicators that were most concerned with the market direction up.
TSX Intraday Market Direction for July 31 2014
For July 31, the one minute chart of the TSX below shows the day’s action. The opening actually saw the TSX try twice to rally. When that failed, investors obviously took their cue from the USA Markets and began to sell lower. The TSX stopped around 10:30 at 15400 which I discussed last night as a weak support zone that the TSX might try to build support in. After about 15 minutes of sideways action the downturn continued and stocks were pushed all the way to 15275 by around 12:30. From there, stocks pushed back to the 15400 level once again. Selling in the US Markets though was steady and while the TSX tried to rally, the Dow, S&P and NASDAQ were still being sold.
The TSX turns back to selling and eventually the market closed at 15330.74 for a loss of 194.08 points.
TSX intraday Market Direction for July 31 2013
Many stocks actually stood up quite well losing far less than the index. Cenovus Energy Stock which I picked up yesterday for example,. fell just 0.36%. Bank of Nova Scotia stock was down 0.46% and Royal Bank was down just 0.24%. Much of the damage was in the resources stocks like Teck Resources stock which was down 2.02% and Barrick Gold stock was down 2.18%.
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TSX Market Direction Outlook for August 1 2014
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