It seems you have JavaScript disabled.

Ummm.. Yeah... I'm going to have to ask you to turn Javascript back on... Yeah... Thanks.

Looking at the TSX Composite at Trader’s Narrative






The Toronto Composite Index has been whacked with the double whammy of a general market drop and a commodity pull-back (oil and gold). The result has taken the index down from almost 12,500, in mid-April, to around 11,800.

Previously, I wrote about my unique take on % of stocks above their moving averages, and below you can see it applied to the TSX index:

TSXaboveMA.png

As you can see, the ratio is fast approaching levels which have marked significant market bottoms. I don’t think we’re necessarily there yet, but the situation does deserve to be closely watched.

Enjoyed this? Don't miss the next one, grab the feed  or 

                               subscribe through email:  

3 Responses to “Looking at the TSX Composite”  

  1. 1 C. Maoxian

    I don’t get the right scale… can there be more than 100% of stocks above both their 50 and 200 day MAs? Should 1.00 be the max?

  2. 2 Babak

    Perhaps my explanation wasn’t clear enough. Of course you can not have more than 100% or less than 0% of stocks above any MA. The right scale of the graph is showing a ratio: the % of stocks above 50 MA divided by the % of stocks above 200 MA (in the TSX Composite). As I point out, that is my unique take on this metric. Hope that is clear now.

  1. 1 Ugly, But Good at Trader’s Narrative


Leave a Reply