Resolution In TSX Is Coming Soon

Today was a fitting conclusion to a shortened holiday trading week where we saw a lot of stocks and the indexes rise on below average volume on what amounts to no news. When viewing many charts I see a lot of negative divergences, rising bearish wedges, and no leadership in the form of breakouts. I would be very careful chasing a market on the long side right now.

The Toronto Stock Exchange is at a tricky crossroads and should provide some resolution in the coming days. It's getting a bump from precious metal's recent strength due to the many commodity stocks on the index and that could be enough to push it higher, so no changes in my small remaining position in EWC this week. Let's just say at this point the Canadian markets look a little better than the US markets, but one big down day could change a lot with the TSX. When looking at the chart below I have a hard time getting excited about the long trade.

Another look at resistance on the TSX.

Note the RSI trendline, rising bearish wedge, and low volume.