The TSX 60 respected resistance at 700 on the weekly chart. Penetration of the descending trendline suggests that a bottom is forming, but failure to break 700 would mean a re-test of primary support at 640. Money Flow remains strong but formation of a peak below zero on 63-day Twiggs Momentum would warn of continuation of the primary down-trend.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.