The past week on the Toronto Stock Exchange was significant. Technically the Toronto Stock Exchange has been unable to recover the all-time high of 15,685.13 which was made on September 3 2014. This week the TSX broke its support level set in January 2015 which was tested and held in March 2015.
The chart since January 2 2015 below shows the extent of the continuing decline on the Toronto Stock Exchange. While for the past few days I had been hopeful that the TSX was forming a bottom around the important 14750 level, investors were obviously not buying into that bottom. On Friday as the TSX fell through 14600, volume picked up and the TSX experienced the heaviest volume day in more than a year with 608 million shares traded. 72% of the volume on Friday was to the downside. The low for the day was 14,584.43. While many analysts were jumping on the “bounce bandwagon” with so much volume on Friday as they pointed to the rebound in prices from that low to a close of 14,653.12, the outlook remains poor for the TSX even if there is a bounce to start the week off.
Toronto Stock Exchange 2015 Chart
On January 2 the TSX opened at 14,637.34 and by Jan 14 it had reached a low of 13,892.57. That sparked what turned out to be a failed rally which by early March had the TSX back to the 14600 level. This time the level held and the TSX tried to climb into April. The problem is commodity prices are depressed. While the USA is watching unemployment improve and their economy expand, the Canadian economy is not expanding but instead Canada is experiencing “sideways growth”. Momentum since April has turned decidedly negative and remained as such. Friday saw momentum turning lower again. Since the start of January, the TSX has basically gone nowhere and is sitting with a slight loss.
TSX Daily Chart
Looking at the past couple of weeks and in particular this past week, it is obvious the …………….. the rest of this strategy discussion article is for FullyInformed Canada Members..
TSX – The Week Ahead – 4th Week Of June 2015
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