Canada broke to two-year lows this week and now the long term trend line has been broken. From a technical perspective, this is a very important signal. Previous weekly pushes down did not close the week below the trend line. This week this is in jeopardy at the time of writing.
Canadian investors should also note that this will be the lowest close in two years. The chart in the bottom shows the Canadian market underperforming the US market as well.
Greg Schnell, CMT
About the author:Greg Schnell, CMT, is a Senior Technical Analyst at StockCharts.com specializing in intermarket and commodities analysis. He is also the co-author of Stock Charts For Dummies (Wiley, 2018). Based in Calgary, Greg is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the CMT Association and the International Federation of Technical Analysts (IFTA).