With all the snow we have had this year, I think Canadians coast to coast to coast will be welcoming the spring equinox on March 20, 2014. It looks like the $TSX needs something to help it over the previous resistance. Here is a 4 year view of the situation. Notice it was a similar time of year when we made the 2011 high.
So the bottom line is on a weekly view, we are testing it. Let's zoom in to the last 3 weeks.
Up to this point we have had intra day highs bang their heads on this ceiling. After this morning broke through the bottom of the previous 5 candles which had almost identical daily trading ranges, the $TSX squirted back up to test the resistance line again, only to close 10 points below. As Friday approaches we'll see if it can close above. We do have an intraday high that exceeded the previous high by 6 points. Today's close was the highest close of the last 7 days, so there is reason for optimism!
Maybe when the $TSX breaks through it will be like a warm thaw and wipe out the snow sitting around. Time to get on with spring!
Good trading,
Greg Schnell, CMT
