TSX close to oversold levels, says analyst

The TSX retreated nearly 2% last week, falling below its 50-day moving average and experiencing a six-week low on broad-based losses, says Prab Sagoo, associate director at Nasdaq Advisory Services, in his weekly commentary.

Further, the TSX is moving close to technically oversold levels, he adds, noting that small caps, and energy and healthcare names struggled most last week. As a result, says Sagoo, “investors retreated to the safety of gold and materials names, which outperformed.”

Read:

• Positive signs for well-positioned junior minors
• Gold managers advise caution

More highlights

• Last week, the S&P500 extended its streak to nine consecutive days of declines marking the longest losing streak since 1980.
• Developments in the U.S. election drove markets last week and will continue to drive markets this week. The result and nature of it will determine whether uncertainty will continue to plague the markets in the near term. Read: Help clients prepare for U.S. electi0n fallout
• Also, economic data this week is relatively light: we’ll get some housing data domestically, and consumer data highlighting on Friday in the U.S.

Staff

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