The outlook for the Toronto Stock Exchange for Tuesday was weakness with a lower close. I was not expecting a drop of 143 points but I have discussed repeatedly two facts – overbought and trading at the all-time high. The TSX has been overbought for quite some time. The past 3 days saw the market direction trending sideways as the overbought condition kept further advances in check and to a minimum. This makes further advances difficult. Second is the TSX trading at its all-time high. While many analysts do not believe all-time highs are much of an issue, historically they are. Investors always worry about markets when they reach all-time highs. As long as the market keeps climbing they do not worry, but when they stall, which is what we have seen for the past 3 days, investors eventually look for reasons to take profits. This is only natural and a part of investing, but it is something to be aware of.
TSX Market Direction Outlook for June 25 2014
Tonight’s TSX market direction explains the market direction outlook and my plans for tomorrow and what I will be doing near the open.
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