Conclusion for Today’s Analysis:
Failure of the TSX to Close Above its Previous High of 16,586.46 Indicates a Potential Switch in Regime From Bullish to Bearish.
Price action closed on December 24, 2018 below major support between 14,947.58 and 14,330.16. Moreover same close on December 24, 2018 saw price action close below its bullish trend line that has lasted over a decade. The use of bullish trendlines was also highly effective in this trade.
Both scenarios above do call for a huge caution and/or warning for the current uptrend in the TSX. The market condition for the TSX in this case is therefore a downtrend to a side trend at best.
Resistance or overhead supply lies between 16,586.46 and 16,299.69.
The sideways market condition for the TSX considered in this analysis is better referred to as a rectangle top formation (tentative) that exists mainly between the upper boundary of support i.e. 16,586.46 and lower boundary of resistance i.e. 16,299.69.
Price breaking out above the high made on July 13, 2018 of 16,586.46 marks the resumption of the uptrend in the TSX.
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