Always consider hidden risks
SP TSX60 Index (XIU ETF): Caught by Surprise?
June 19 2017 ( From Tradingview )
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The SP TSX60 Composite Index (XIU ETF) did have a great performance
since bottoming out on October 31 2016 week (just before the US Election).
It did peak on February 13 2017 and is within a Consolidation Phase
(Weekly Downtrend Channel). (See First Chart Below) On the January 2 2017
week, we did have a Breakout on the XIU ETF as we broke the Major
Weekly Double Top Trendline at 22.78 that was significant for Bulls then.Most of us do not realize that it is the first time (since the January 2 2017)that we did have a weekly close below 22.78 on the XIU ETF as shown by
the first chart below (Red Trendline).The market was totally Caught by Surprise from a speech of the Bank of Canada: Canadian economy showing encouraging signs, says Senior Deputy Governor Wilkins
Many unintended consequences from that speech:1) Short term interest rates spiked up in Canada2) The Canadian Dollar rallied tremendously3) But the most interesting technical factor is that we reached a high ever on a Weekly Close on a Relative Volatility Basis (Weekly Ratio of the Volatility of the SP TSX60 Index (VIXC) v1 the SP500 Index ( VXO ).
(See Second Chart Below - Thin Blue Line). 4) The Relative performance (Weekly Ratio of the XIU ETF over the SP100 Index ETF OEF) reached a level last seen on June 2004!
That rising relative volatility is showing a lot of nervousness for the Canadian Market... As we broke the Previous Weekly Double Top Support on the XIU ETF, Bulls are loosing momentum tremendously...
SP TSX60 Index (XIU ETF): Caught by Surprise? $TSX #Trading #Canada #investing #tsx60 #stocks #risk
SP TSX 60 Index - XIU ETF ( Daily Candles - Top Panel )
4 WMA ( Yellow Line )
12 WMA ( Blue Line )
52 WMA ( Red Line )
SP TSX60 Composite Index Volatility (VIXC)
SP100 Index Volatility (VXO)