In my post of September 14, I had identified a Fibonacci target price of 16,972.52 for Canada's TSX Index. At the time, its price was $16,682.42.
It, subsequently, hit an all-time high of 16,947.23 on September 20 and has been in decline ever since, as shown on the following monthly chart.
The Balance of Power has shifted swiftly and sharply to sellers and has reached the extreme level in just two weeks. Historically, this level has signalled either the beginning of much more selling ahead, or a point of exhaustion and reversal.
With Canada's Federal election coming up on October 21, we may see this index slide further until then. If either a minority Liberal or Conservative government is elected, I think we'll see a further drop to around 15,600, or lower. After hearing a few political analysts comment on last night's (Monday) party leadership debate, I think that scenario is possible. Public support for the Liberal and Conservative parties is fairly evenly divided at the moment and we may see the NDP party gain enough support to thwart a majority government by either party.
Where the TSX Index goes from that date is anybody's guess...so keep an eye on the Balance of Power indicator for possible clues.
Welcome and thank you for visiting!
The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex
* The content in my articles is time-sensitive. Each one shows the date and time (New York ET) that I publish them. By the time you read them, market conditions may be quite different than that which is described in my posts, and upon which my analyses are based at that time.
* My posts are also re-published by several other websites and I have no control as to when their editors do so, or for the accuracy in their editing and reproduction of my content.
* In answer to this often-asked question, please be advised that I do not post articles from other writers on my site.
* From time to time, I will add updated market information and charts to some of my articles, so it's worth checking back here occasionally for the latest analyses.
DISCLAIMER: All the information contained within my posts are my opinions only and none of it may be construed as financial or trading advice...
UPCOMING (MAJOR) U.S. ECONOMIC EVENTS...
* Wed. Oct. 16 @ 8:30 am ET ~ Core Retail Sales & Retail Sales
* Wed. Oct. 16 @ 2:00 pm ET ~ Beige Book Report
* Wed. Oct. 30 @ 2:00 pm ET ~ FOMC Announcement + FOMC Forecasts and @ 2:30 pm ET ~ Fed Chair Press Conference
* Fri. Nov. 1 @ 8:30 am ET ~ Employment Data
* Wed. Nov. 13 @ 8:30 am ET ~ MoM & YoY CPI & Core CPI Data
* Wed. Nov. 20 @ 2:00 pm ET ~ FOMC Meeting Minutes
*** Click here for link to Economic Calendars for all upcoming events