ctdtrading.com

In my previous technical note, markets showed technical divergence.  That was before QE2 FED official announcement.  Since then, we rallied higher and subsequently are in correction mode.  Is this a top for S&P? or is this just a correction?

Here are the charts once again.  

Note: 

• Gold – Possible H&S Pattern (will have to wait and see)
• Silver – Has a very well defined trend
• SPY –   Mini trading range with 1200 as resistance
• SPTSX – Has major support 12,500 and has broken its downtrend

Major Divergences appearing on all indices prior to the FED QE2 announcement. Not Sure how the markets might react but the setup going into the news does not look good.  

All charts are 60min timeframe.  If you're look at the daily chart, you will not this distinct picture unfolding.  All Trendlines are roughly drawn to get the big picture

EEM chart shows a breakout out of the recent range…while it’s true that other markets have broken out of their range.  This breakout is more significant!

It demonstrates that emerging markets are leading vs the SPY (american markets).  Below are two charts for comparison.  Notice in mar 2009 EEMdid not make a new low and SPY did.  Now EEM breaks out of the range and SPY has yet to!  This is a good indication for a strong rally to the end of the year, unless we get bad news again.  So, keep an eye on the emerging markets as they are leading this rally.

[View with PicLens]

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Above is a slideshow of a list of stocks with “strong buy” recommendations on the Toronto stock exchange…

click on “View with Pic Lens” to view all the charts

The “strong buy” recommendations come from globeinvestor.com.  Note this page contains only equities (no warrants, debentures, income trusts etc)