This week, the Canadian market internals are messy at best. We have so many things that are sliding so we should be leading off with the banks. They set the Canadian tempo currently.
The bear flag on the Canadian banks suggests more moves to the downside.
The Tech stocks north and south of the border are struggling. Canada's tech sector has rolled over as well.
The $TSX looks firmly broken. This monthly chart needs an explosive move to stop the PPO cross. Look at the meaningful market responses to long term rollovers in the PPO. Look at the price action for the last 18 months in the zoom box. Failed breakout in January, huge thrust down in February. But March continues to make a lower close. We'll need a 200 point gain later this week to get back to unchanged. That's possible, but it won't eliminate the turn on the PPO.
StockCharts.com Bookstore has lots of copies of the new book.
Continuing on with the market review, the internal breadth measures continue to disappoint. The percentage of stocks on a buy signal continues to diminish. We are now at 55%.
I will have a lot more on the Thursday edition of Commodities Countdown Video. As well I will be co-hosting the MarketWatchers Live show all next week with Erin Heim. We'll kick that show off with Chip Anderson joining us on the air for some major announcements. It's a don't miss week for video at StockCharts.com. This is more exciting than Sergio defending at the Masters!
It's after market close on Wednesday and I have put out an important article on the US Dollar on the Commodities Countdown blog. Vicious Reversal In The US Dollar. That's a short must read!
Greg Schnell, CMT, MFTA.