TECHNICAL ANALYSIS: TSX Edges Higher, Could Make It Five Days of Straight Gains; Sectors Mixed; Momentum Turns Positive
The TSX is just barely in the black at around the 14,800 mark in afternoon trading, but a gain is a gain and the index is set to make it five days of gains in a row if it can hold out from here to the end. The move higher came after the index moved lower shortly after the open, but then rallied to reach an intraday peak at 14,820 at around 1pm ET.
Sectors, too, have been mixed with Industrials driving gains and Telecom bucking the trend.
The overall uncertainty in the TSX and Sectors possibly reflects the uncertain reaction of analysts and market watchers to all of the news out of the European Central Bank, which cut interest rates and announced a number of programs that are intended to stimulate the European economic and drive up inflation.
Canada's weaker than expected PMI report did little to help stock prices early on. Canada's Ivey PMI fell to 48.2 in May (median 58.0) from 54.1 in April.
Momentum on the TSX has turned positive with the MACD (moving average convergence divergence) index generating a buy signal. This occurs when the spread (the 12-day moving average minus the 26-day moving average) crosses above the 9-day moving average of the spread.
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