TSX Composite Index (10820)

During the current recovery period, this index has retreated from resistance at 7000, 9000 and 10,000 before moving on through each of these important price barriers. In all cases the setbacks lasted for two months or more.

The other day we slammed into resistance at 11,000 for the first time, and as I write we are selling off quickly. Previous selloffs from round numbered resistance levels have not impaired the long term recovery trend, but short term damage has been meaningful.

It remains to be seen if the selloff from the price barrier at 11,000 will reach beyond the short term to produce more serious negative results. In any event I am taking it seriously.