S&P/TSX Composite Index (INDEX) Update

This TSX chart represents our main Canadian stock index. In the last few weeks and filled with bullish fundamental news flashes, this market has gone virtually nowhere, struggling trying to go higher. The bull market since the 2009 bottom can’t work as an impulse, but fits the pattern of a diagonal 5th wave pretty well.

Wave 4 crashed well into the previous wave 2 position, which has come close to its maximum retracement level. I haven’t developed good large degree wave positions this time,  as the 2009-2018 bullish phase could be a “B” wave triangle top! That could only happen if the 2007 peak was an expanded pattern. The TSX contains a wide spectrum of different sectors, so it’s wave count is going to be elusive.

Our main index is not going to go through a USA stock bear market, where we can expect our stock market to not be influenced by what is happening south of the border. TSX 11,000 and 7500,  are going to be two major support levels that could get retraced, but just getting past the 11,000 price level will be an achievement.

It’s not my top priority to keep detailed wave counts of our TSX index, but I will try and catch some of the bigger degree turns.

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