Always consider hidden risks
SP TSX60 Index (XIU ETF): Compression Time?
November 16 2016 ( From Tradingview )
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The SP TSX60 Composite Index (XIU ETF) did have a great performance
since bottoming out on June 27 (Brexit Fear). It did not reached the
200 DMA (Day Moving Average) back then.(See First Chart Below - Blue Trendline - Elipse)It did outperform the SP500 Index (SPY ETF) since November 2 2016.
We are into a Daily Rising Wedge on the XIU ETF since June 27 2016.
(See First Chart Below - Blue Trendlines)
Weakening trading volume environment after the election. (See First Chart Below - Bottom - Blue Area)Interesting to note that the XIU ETF is at +6.2% above the 200 DMA (Day Moving Average) (See First Chart Below - Green Line) and the SPY ETF (SP500 Index) is only +4.4% above its 200 DMA.
The XIU ETF is within a strong compression phase price wise. Usually that kind of pattern always bring more Volatility down the road...
But the most interesting technical factor is that we are getting near that previous resistance trendline as the Volatility of the SP TSX60 Index (VIXC) is rising faster than the SP500 Index (VIX) since November 1.
(See Second Chart Below - Thin Blue Line- Ellipse). That rising relative volatility is showing some nervousness for the Canadian Market... The potential breakout of the Daily Rising Wedge will just add to it....
SP TSX60 Index (XIU ETF): Compression Time? $TSX #Trading #Canada #investing #tsx60 #stocks #risk
SP TSX 60 Index - XIU ETF ( Daily Candles - Top Panel )
20 DMA ( Yellow Line )
50 DMA ( Blue Line )
200 DMA ( Red Line )
SP TSX60 Composite Index Volatility (VIXC)
SP500 Index Volatility (VIX)