Always consider hidden risks
Cda TSX Small Cap Index: Outperforming?
 June 20 2016 ( From Stockcharts  )
If you would like to receive our free daily markets updates, please Sign-Up

The Situation

Since bottoming out on January 20 2016 at 412.67, the TSX Small Cap Index
​is within an uptrend channel... In fact, the low reached on January 20 at 412.67
​on the TSX Small Cap ​Index was last seen in July 2009.​ (See first chart below)

​​The TSX Small Cap Index was then in a major bottoming out technical pattern:

​​1) On February 17 2016, it broke the resistance trendline that started back
​since October 9 2015. (See first chart below - Red Trendline - Elllipse)

​2)  On February 23 2016, we had the 20 DMA ​​(Day Moving ​Average - ​yellow ​line)
​​crossed above the 50 DMA (Day Moving ​Average - ​red line) , another ​good omen...

3) On March 4 2016, ​​we are did close above the 200 DMA (Day Moving Average - ​Green Line)​, the first time since June 2015! . 

​We need to stay above the 50 DMA (Day Moving Average - Red Line) now at 581.27 fro now to keep a positive technical set up.
​(See first chart below - Red Line)

​4) ​​​​The TSX Small Capitalization started to outperform ​​since ​January 20 2016 ​​compare to ​the Mighty TSX60 Index ​(so on a relative basis) and that ratio broke on the upside on February 26 2016 the 200 DMA (Day Moving Average - ​Green Line)​; that was another game changer for the Small Cap because it did change the Major Bear Trend back then...

​​Few realize that in fact, the TSX Small Capitalization Index behavior is following the trend in Oil prices as shown by the first chart below...​ (See first chart below - Blue Line)

​​​​​​​But the most interesting technical factor is that we tested since September 2015 the Major Support on a relative basis ​(Ratio of the TSX Small Capitalization over ​the Mighty TSX60 Index) and broke on June 6 the Major Resistance Trendline . For Technical strenght, we need to stay above that old Major Resistance Trendline reached back on July 2011. ​ ​(See second chart below - Amber line - Ellipses)...

But for me, we can still have an outperformance of Small Capitalization but the real break out will be only if we are able to get over the previous peak in price reached on November 21 2014 at 620.57. It was tested on June 8 2016 and was rejected. 
​(See first chart below - Amber Trendline - Elllipse)

Cda TSX Small Cap Index: Outperforming? $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​ - Right Scale
​20 DMA ( Yellow Line )
​50 DMA ( Red Line )
200 DMA ( Green Line )
Oil Price ​- Blue Line - Left Scale