Once again, the markets spent much of the day in back and forth price action and then had a relatively strong close. It should be noted that many stocks have retraced to strong resistance levels and the major indices remain below the 5o week moving average so caution is still warranted. Royal Bank (RY.TO) reported it will be taking an $850 billion write down of its US operations, but indicated that this will not impact its dividend. It is likely that other Canadian banks may be making similar announcements. A number of economic reports for Canada are released today. The pace of inflation in Canada has cooled, and the various reports came in slightly lower than expected.
Oil continues in its sideways trend in a wide channel from about $47 up to $53. Gold and silver remain in their sideways trend as well.
As of this writing, futures are flat and the DAX is positive, indicating a mixed open. The market condition scans and the market bias indicators are both showing neutral signals indicating once again a choppy indecisive market that remains in a bottoming condition.
| Index | Change | %Change | Level | Phase |
| TSX | +97.26 | +1.05% | 9343.37 | Recovery |
| DJIA | +95.81 | +1.19% | 8125.43 | Recovery |
| Nasdaq | +43.64 | +2.68% | 1670.44 | Recovery |
| SP 500 | +13.24 | +1.55% | 865.30 | Recovery |
| Russell 2000 | +12.75 | +2.76% | 473.88 | Recovery |
| NYSE | +69.30 | +1.29% | 5454.27 | Recovery |
Source: Telechart
Short Term market outlook:
Bias: Scans showing a neutral bias
Energy: moderate
Primary Trend: Remains down to sideways
| Sector | Phase |
| Consumer Staples | Recovery |
| Healthcare | Bearish |
| Technology | Recovery |
| Utilities | Bearish |
| Energy | Recovery |
| Financials | Recovery |
| Industrials | Recovery |
| Materials | Recovery |
| Consumer Discretionary | Recovery |
Source: Telechart
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