Always consider hidden risks
TSX Index Bull%: Weakest Bull Sentiment of the past 5 Years ?
 August 31 ​( From Stockcharts  )
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The Situation

​This Indicator reached only 25.9% on August 26 2015, the lowest spot level of the
​past ​five years and far away from the last record level on August 22 2014 at 84.4%
​when the ​TSX60 Composite Index was at 892.71.

​​The main technical indicators like the moving average of the Bullish Percentage Index
​of the SP500 Index  are showing some sign of bearishness since May 29...​

​​This ratio turned on a bearish trend since May 29 and now stand ​at 47.58%
​​(49.60%  for the 7 DMA - Day Moving Average).

That Indicator is in bearish mode and below from previous bottom  
​level reached on October 2011 as you can observe on the chart below.

But getting over the 200 DMA on that Indicator ( now at 56.93 - ​red line chart below ) have been in the past a first warning sign ​of overbought conditions building up. ( See chart below - ellipses )​​

​​Also observe the divergence pattern between the % Bullish Index and the TSX Composite Index ; higher highs in May 2015 from the Index but no higher highs from the TSX since May 2015.

We broke the Support Trendline from a Rising Wedge on the TSX at the beginning of May 2015..
( See 3rd Chart  - Thick Black Line​​ ).

The TSX is still within a downtrend channel that started back in April 2015 and in a dead cat bounce from oversold condition on a short term basis Mainly because of my TSX Trendicator was getting below the 3.0 level..​​ ​( See 2nd Chart - Thin Black Line - Ellipse​​ ).

On July 24, we did have the 50 DMA ( Day Moving Average ) getting below the 200 DMA: a Death Cross Technical Pattern.​​  ... ( See Bottom Chart -50 DMA ( Blue Line ) 200 DMA ( Red Line ) - Ellipse ).

But the most interesting technical factor is that​​ we broke on August 20  a Major Support Trendline that started back in October 2014 on the TSX: it becomes then a strong resistance​... ( See 3rd Chart Below - Thick Black Line ).



TSX Index Bull%: Weakest Bull Sentiment of the past 5 Years ?  $TSX  #Trading #Canada  #investing  #tsx60
TSX Index Bullish % Index ( Top Panel - Dots )
7 DMA ( Blue Line )
200 DMA ( Red Line )
TSX Index ( Bottom Panel )​​
​50 DMA ( Blue Line )
200 DMA ( Red Line )
TSX Index
​50 DMA ( Blue Line )
200 DMA ( Red Line )