TSX falls below 50-day moving average

Last week, the TSX underperformed the S&P500 but outperformed steeper losses in other regional markets, says Prab Sagoo, associate director at Nasdaq Advisory Services.

Although the TSX finished with minor losses last week, it’s now trading below its 50-day moving average, he says in a note. Energy stocks led the decline, losing close to 4%, as oil prices dropped by nearly 5%. Meanwhile, health stocks continued to weaken further.

Quarter-to-date winners continued to lead, mainly tech, discretionary and industrials.

Among the non performers were REITs, which lost 1%, and will now be fully trading under their own sector name for the first time this week after getting their own classification within the Global Industry Classification Standard.

Read: REIT analysis tips from equity and bond managers

Volumes were elevated due to the rebalance and “quad witching” for stocks futures and options.

Headlining the week will be the Fed committee meeting, with its results out Wednesday. The Fed chair press conference is at 2:30 pm Wednesday. In Canada, retail numbers, as well as CPI and wholesale trade data, will be released this week.

Also read:

Some Fed members worried rate rise will come too late

Staff

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