Major Down Move for the TSX 60

Last week I wondered if the TSX 60 had put in a pivot top or if it was merely consolidating sideways. Today the answer to that question is clear as the index traded sharply lower down 1.33%. This is a major reversal to the downside and indicates that for the time being we are in a weak, down-trending Canadian market.

Seeing this down-move is good in terms of gauging the direction of the market, but it's unclear if we'll see further selling or if this dip will be bought.

The TSX 60 will have some support at it's current levels around the 20MA, the 50% and the 61.8% fib retracements. Until we break these levels, it's possible that we at least see a small bounce before going lower. However, today's move down was a very big one and should limit any upside we may see.

A pivot appears to be in on the TSX 60

As with the S&P 500, I'll be watching the TSX 60 very closely over the next few trading days. I hope to have actionable levels to swing trade very shortly, but until then follow the chart above as a guide to the nearest support and resistance levels.