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SP TSX60 and SP500: Relative Break Out ?
February 8 ( From Stockcharts )
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The SP TSX60 Composite Index ( XIU ETF ) is still trading within a
Falling Wedge Pattern that started back since October 16 2014.
We did have a false break down in Mid-January and a strong dead cat
We all know how sensitive to commodities prices the Canadian Stock
Market is in terms of behavior.But the most interesting technical factor is that on a Relative Basis
( XIU ETF over SPY ETF ), we are testing the resistance trendline from a Major Falling Wedge that started since May 2009. Breaking that resistance will bring a strong outperformance of the Canadian Stock Market over the Americain one... ( See Chart Below - Red Trendlines - Top Panel -Ellipse ).
In fact, the The SP TSX60 Composite Index ( XIU ETF ) is on a short term basis driven by the US Dollar Index (DXY) as shown by the chart below, bottom panel - ellipse..
SP TSX60 and SP500: Relative Break Out ? $TSX #Trading #Canada #investing #tsx60
SP TSX 60 Index - XIU ETF
SP500 Index - SPY ETF
( Daily Candles )
US Dollar Index ( DXY - Bottom Panel Candles )