With gold and silver rallying so much lately and the Toronto Stock Exchange heavily laden with those stocks I would have expected this index to be performing much better than it actually is.  Having reversed off the trend line and never rising above the 70 level on RSI (which would indicate strong relative strength), this index is looking very week from a longer term time frame when using the 3 line break chart view.

We’re not quite there yet but it looks like I’ll be issuing a sell signal on this market sometime in the next week or two.

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One Response to “TSX Close To Major Sell Signal”

  1. Steve Says:

    Yes, the TSX just couldn’t break the 200 dMA going back to Jan. 26 when it first hit it in this rally. That’s a sign in itself if you ask me. Not to mention the volume has been pathetic. The neg ADX looks as though it is about to cross pos which might line up with the impending sell signal. Seven weeks up, the full stochastic crossing over the signal on the weekly are also ominous signs that a correction is due.

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