Sunday, December 14, 2014

TSX Toronto Stock Exchange Weekly Chart Correction Territory

The TSX collapses -5.1% last week adding to losses and continuing the drop from the 15700 high in early September. The Toronto Stock Exchange has lost nearly 2000 points tumbling -12.5% off the top in correction mode (-10%) but not yet a bear market (-20%). Canada is a commodity nation like Australia heavily dependent on the treasures that Mother Nature offer above and below ground; oil, gas, gold, lumber, etc... The drop in commodities, speaking generally, due to over supply, weakening demand and a rising US dollar are taking a toll.

The selling volume is robust over the last two weeks with traders locking in profits as the year ends. TSX wants to bounce due to the possie d with the histogram, stochastics and money flow but the RSI and MACD line want to see lower lows. Price will want to venture higher at some point in the future to fill that juicy gap left behind at 14450-ish. TSX may stabilize sideways into early 2015 but the downside likely has further legs in the New Year. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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