End-of-quarter volatility on tap for TSX

By Staff | March 29, 2016 | Last updated on March 29, 2016
2 min read

What’s in store for the rest of the week? Prab Sagoo, associate director at Nasdaq Advisory Services, shares his thoughts in his weekly market commentary.


  • The domestic calendar will see both GDP and labour market data on Thursday. Analysts will look to see if the unexpected GDP strength from the fourth quarter carried through into January. Friday will see the U.S. release nonfarm payroll numbers. Also, Janet Yellen will be speaking midday Tuesday – likely to be very closely scrutinized.

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  • Short interest data last week showed there was a significant covering of short bets against the iShares S&P/TSX 60 Index ETF (XIU) (a proxy for CA large caps) in the first half of March, partly contributing to the notable gains seen in the TSX during this time.
  • The Canadian dollar versus the U.S. dollar is now sitting right at a key technical resistance level (~$1.33), though may be set to weaken if Fed rate hike expectations continue to grow.
  • The TSX ended last week below the technically significant 200 day moving average, though continues to trading in relative range-bound manner around the 13,400 region.
  • Furthermore, technical signals indicate buying momentum building in the TSX. However, Materials & Energy stocks, which have been driving gains this year, are not flashing similarly positive signals, which could mean a limit to any moves to the upside for the index. Tech stocks however may see some gains.
  • Expect additional volatility in the markets due to end-of-month and end-of-quarter rebalancing from investors as we approach the latter parts of this week.

Also read:

U.S. home prices up faster than incomes

Economists lower U.S. growth forecasts to 2.2%

Advisor.ca staff


The staff of Advisor.ca have been covering news for financial advisors since 1998.