TSX 60 at 2011 high

Canada’s TSX 60 is testing resistance at 820 on the monthly chart. Sharp divergence on 13-week Twiggs Money Flow warns of medium-term selling pressure. Reversal below 814 would indicate a correction, while follow-through above 826 would signal an advance to 850*.

TSX 60

* Target calculation: 810 + ( 810 – 770 ) = 850