Canada (TSX) – The TSX broke out of its downtrend in late August and made new highs for the year. On the chart below, we have a double top made last week. If the TSX pulls back in the coming week it will likely move back to the 12300 support level.
This week will herald some important news, which I will discuss tomorrow.

S&P 500 – The S&P 500 is at a resistance level, which needs to be taken out before it can make a move to the 1220.

It appears as though technically we may be in the process of making a top similar to the one made earlier this year. While the S&P may push through these levels and continue to move higher it is possible that we see a pull back around the end of October/early November for the reasons we stated last week.

I am not short the market BUT looking at the speed at which selloffs occurred this year, it would be prudent risk management to protect your trading gains by tightening up stop losses in the event we see a sell off as traders and hedge funds choose to lock in performance gains for the year.

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