FINANCIAL ICEBERG
Always consider hidden risks
 TECHNICALS
SP TSX60 and SP500: Relative Break Out ?
 February 8 ​( From Stockcharts  )
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The Situation

​​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
​bounce followed...​ ​


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.




​​

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SP TSX60 and SP500: Relative Break Out ? $TSX  #Trading #Canada  #investing  #tsx60
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RATIO
​SP TSX 60 Index - XIU ETF
over
SP500 Index - SPY​​ ETF
​( Daily Candles  )​​
US Dollar Index ( DXY - Bottom Panel Candles )​