Like US market, the TSX is overbought both intermediate-term and short-term so I believe it will pullback along with the US market.
1.4.0 S&P/TSX Composite Index (Daily), possible Bearish Rising Wedge is in the forming, overbought and negative divergence on TOAD and TOUD, ChiOsc bellow is a little bit too high.
1.4.1 S&P/TSX Composite Index (Weekly), STO is way overbought.
1.4.4 TSE McClellan Oscillator, negative divergence on TSE McClellan Oscillator, also TSXA50R is way too high which in the past was likely a market top even in a bull market.
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Ok now I think that the markets will crash and start a downward trend to 450 on the S&P. I think we'll get a bounce at 750 on the way down. However, these bear market rallies are pretty dangerous for shorters.
ReplyDeleteOn the contrary, have you considered that there might be an inverse head and shoulders, or do the technicals not line up with that prediction?
Yes, a big H&S bottom could be in the forming, but I haven't seen the right shoulder yet.
ReplyDeleteVirtually everyone is playing the wedge. I'm wary the charts will play out as we see them. It's that time in March when everyone went short only to get ripped off. I think the market may give us a head fake. It's too obvious to be short right now.
ReplyDeleteRik
I believe there might be a breakout on the upside first.
ReplyDeleteMaybe BAC provides that breakout.
ReplyDeleteRik
never play along obvious patterns. they do not pan out
ReplyDeleteWhat da hell??? Canadian market??? They're socialist government! Forget that market and concentrate on US market.
ReplyDeleteBTW, getting good profits on FAZ abd SDS today.
ReplyDeleteThis is great, Cobra! Personally, I don't trade the Canadian market, but it is fantastic to see you steadily expanding your analysis. This is a great blog!
ReplyDeleteMe XMan: in case you haven't noticed, the U.S. has become socialist, too, but only for the rich.
ReplyDelete"Privatize the profits, socialize the losses." -- It's the new American Dream!