As I write this post around 10:45 am ET on Monday, January 5th, Canada’s TSX Index has plunged by 310 pts., as shown on the following Daily chart.
A hold below the 50 MA (a bearish Death Cross formed awhile ago and was retested twice) could see price drop to retest the double bottom around 13,650, or lower. Watch for a bearish crossover to form on the MACD and for a drop and hold below the zero level to confirm such a scenario.
Also, as I mentioned in my post of January 2nd, a drop and hold below $50.00 on WTIC Oil could very create such a down-draft in the TSX Index…and, possibly, all other World markets.
