Always consider hidden risks
SP TSX60 Index (XIU ETF): At the Resistance Zone?
October 25 2016 ( From Stockcharts )
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Financial assets like the SP TSX60 Composite Index (XIU ETF) had a very
good performance indeed since bottoming out strongly post Brexit fears;
XIU ETF up +9.8% and only +7.7% for SPY ETF since then.We are into a Daily Rising Wedge Technical Pattern on the XIU ETF since June 27 2016 (See First Chart Below - Blue Trendlines) and now testing a Major
Resistance Trendline from that Wedge that started on October 9 2015.
Interesting to note a weak trading volume environment since getting near
the Resistance of that Wedge (See First Chart Below - Bottom - Blue Area)Interesting to note that the XIU ETF is at +7.9% above the 200 DMA (Day Moving Average) (See First Chart Below - Green Line) and the SPY ETF (SP500 Index) is only +3.7% above its 200 DMA.
But the most interesting technical factor is that on a Relative Basis (XIU ETF over SPY ETF), we already broke the resistance trendline from a Major Falling Wedge that started since May 2009 (See Second Chart Below -Red Trendline) and now above the Resistance from a Falling Wedge. (See Second Chart Below - Blue Trendline)
Also, we have been above the 200 DMA (Day Moving Average) on a relative basis since June 17 2016 as very few of us noticed . (See Second Chart Below - Green line -Ellipse).
Financials and the Energy sector are 60.3% of the XIU ETF (no typo).
The Canadian Stock Market is at Crossroads: At the Resistance Trendline Price Wise and at the mercy of the Financial and Energy Sectors....
SP TSX60 Index (XIU ETF): At the Resistance Zone? $TSX #Trading #Canada #investing #tsx60 #stocks#stocks
SP TSX 60 Index - XIU ETF ( Daily Candles - Top Panel )
20 DMA ( Yellow Line )
50 DMA ( Blue Line )
200 DMA ( Red Line )
TSX60 Index (XIU ETF)
SP500 Index (SPY ETF)