S&P/TSX INDEX Update for 07.05.2008

S&P/TSX INDEX - $TSX-TC

Monthly chart shows regular divergence with the June 2008 high. So far, the market has managed to fall back through the prior high and key LIS of 14,625. No buy signal/pattern evident on this timeframe.

Weekly chart better shows the increased selling pressure since the high of June 2008. Market is retracing the move up off the January 2008 low. First downside target is at the .618 fib level.

Daily chart shows market is currently below its 8ema and 34ema. The 200sma is currently right below last week's low. Look for possible consolidation before next leg lower.