Always consider hidden risks
TSX Small Cap Index:  Cratering ?
 August 24 ( From Stockcharts  )
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The Situation

The TSX Small Capitalization started to underperform ​​since ​May 13​ ​
​compare to ​the Mighty TSX60 Index and the ​20 DMA (Day Moving
​Average) ​​turned ​downward on June 15. ​​But one ​crucial Technical factor
​is that we failed yet to get above the 200 DMA ​on that ratio (Small Cap 
​over the ​TSX). We are on a relative basis the ​cheapest we ever been
​since ​March 2009.​  ( See second chart below - Amber line - Ellipses )...

​​The 50 DMA ​​(Day Moving ​Average - ​red line) on the TSX Small Cap
crossed below the 200 DMA on June 15, bringing what is called a
death cross technical pattern.​, another bad omen... ​( See first chart below )

​The TSX Small Cap Index is within a downtrend channel that started back on June 26 2015 with 498.89 as support and ​538.84 as resistance. We need to break the resistance of that downtrend channel before thinking of a potential reversal... ( See first chart below )

Last time we reached those levels was back in November 2009 on the TSX Small Cap Index.  
( See third chart below - Red Trendline ).

​​​​But the most interesting factor is that we broke on June 26 a Wedge Pattern that started ​on December 15 2014, a bad technical sign indeed ​​as shown by ​the ​​first ​​chart ​below - ( See first chart below - Red Ellipse).

TSX Small Cap Index: Cratering ?  $TSX  #Trading #Canada  #investing  #tsx60
​TSX Small Capitalization Index
​TSX60 Index  Index
20 DMA ( Yellow Line )
​​​50 DMA ( Red Line )
200 DMA (  Green Line )
TSX Small Capitalization Index
Daily Candles​
​20 DMA ( Yellow Line )
​50 DMA ( Red Line )
200 DMA ( Green Line )
TSX Small Capitalization Index
Daily Candles​
​20 DMA ( Yellow Line )
​50 DMA ( Red Line )
200 DMA ( Green Line )