The technical outlook for the Toronto Stock Exchange for Friday was for stocks to remain weak but end the day still higher. Part of the reason for this is of course the intense oversold condition of the market. The Toronto Stock Exchange is down 5.5% as of Friday’s close in large part because of the dramatic rise of the US dollar which has hammered most commodities. But a rise as quick as the US dollar has experienced does not last and eventually we will see the dollar stagnate and then move a bit lower. That will boost Canadian stocks again, particularly resource based stocks. On Thursday TSX stocks fell below the 100 day EMA but recovered. This for many analysts was a technical wash out and they are expecting stocks to rebound. Friday did see a small rebound but let’s take a closer look to see what we should expect on Monday.
Here is the market direction for the TSX for October 6 2014. The rest of this TSX market direction outlook article is for members.
TSX Market Direction Outlook for Oct 6 2014
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