Canadian bear trap?

Canada’s TSX 60 index recovered above primary support at 650. Follow-through above the April low of 675 would indicate a bear trap, presenting an early buy opportunity for aggressive traders. The more cautious may be inclined to wait for recovery above 730, especially as 63-day Twiggs Momentum (below zero) continues to warn of a primary down-trend.  Reversal below 640 is more likely and would signal a decline to 580*.

TSX 60 Index

* Target calculation: 650 – ( 720 – 650 ) = 580

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