TECHNICAL ANALYSIS: TSX Notches Up Fresh 6-year Highs; Momentum on Health Care Turns Negative
The TSX is up again in Tuesday afternoon trading - higher by 15 points after hitting a fresh 6-year peak earlier and looking set to make it eight days of straight gains. Sectors are largely mixed, with the index boosted by interest in Materials and Telecoms stocks, but capped by Healthcare and Energy.
According to BNN TV, today's trading volume is about 13% lower than average. BNN says investors are moving out of crude oil and buying gold. It says the market is awaiting tomorrow's inventory report which is expected to show a drawdown in crude.
The S&P / TSX Capped Health Care index is lower by 0.7%, and is weighing on the broader index. Momentum on the Health Care Index has turned negative with the MACD (moving average convergence divergence) index generating a sell signal. This occurs when the spread 9the 12-day moving average minus the 26-day moving average) crosses below the 9-day moving average of the spread.
The RSI on the Health Care index is moving lower along with price action, reflecting accelerating negative momentum while printing near 53, which is in the middle of the neutral range.
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