What I mean by that title is last week I was noticing some positives in the TSX and I actually thought recent strength in precious metals could be enough to lift this index out of it’s major bearish trend, but today changed that. Weakness in the US markets today and Gold’s declines last week has the TSX is in danger of a more serious decline.
While I can’t go into specifics as to what triggers my timing signal let’s just say I’m glad I kept a small short in this during it’s last 2 weeks of gains as I think it’s in danger of retesting the lows if it can break the rising bearish wedge. I haven’t added to that position as it hasn’t given an all clear to short yet, but I think it’s coming soon, especially when you consider the 2nd chart below.
The Commodities Related Equity index bounced at support and has formed it’s own rising bearish wedge. If that breaks it will likely close the gap near $780 and then we’ll see if that can hold.