Wednesday’s TSX (Toronto Stock exchange) close was $13,514.14.

The TSX rose to a 52 week high of 14,646.82 on July 19, 2007 and dropped to a low of 12,011.68 on Jan 22, 2008.

Since October 2007, the TSX has been trading down when you look at the 50-day moving average. The current price of the TSX has recently crossed the 50-day moving average which may be suggesting a new sustained direction. Resistance at the top is about 13,700 and support on the bottom end is at about 12,700 (denoted by the red trend lines). The market is consolidating, however if the current price breaks resistance we could see a longer term direction forming.

Year to date, the TSX has outperformed the S&P 500 due to the strength of energy and materials.

As money managers we use technical analysis to determine the timing (entry & exit points) of our buy & sell decisions. We use fundamental analysis to determine the merits of what we buy and sell and ultimately whether we are buyers or sellers of the security or market.