The main Canadian index showing a nice path for the stock market

The main Canadian index shows a very nice picture telling us to expect sideways action before another upleg materialize to end the advance from the January low. A very nice rally that is running out of steam pretty much like the US market.

A good target is around the 14K mark. We will keep an eye on it and we think the top is in, we will let you know.

This index has a strong bias towards Financials, Energy and Gold miners thus even if I think it is a good proxy for the overall direction of all markets, it is an even better indicator for those three sector and especially Energy and miners.

We see this rally and the upcoming pullback as part of a bigger rally. In other word, we are bullish long term until further notice