Canada’s TSX 60 broke through resistance at 820, signaling an advance to 850*. Sharp divergence on 13-week Twiggs Money Flow is testimony to the level of selling encountered at the resistance level. Completion of a trough high above zero would signal a strong up-trend. Reversal below 810 is unlikely, but would warn of a bull trap.
* Target calculation: 810 + ( 810 – 770 ) = 850
TSX 60 VIX is exceptionally low at 9, typical of a strong bull market.
