$TSX-TC Update for 09.21.2008

S&P/TSE INDEX - $TSX-TC

Monthly chart shows bottoming tail indicating buying off support at 1800 level. No buy signal/pattern evident on this timeframe as of yet.

Weekly chart better shows the bottoming tails, indicating aggressive buying off prior support. The bulls managed to close the index slightly above where they closed the week before.

Daily chart shows regular divergence being created with the lower low made this week. We can also make the case that we have 5 waves down from the June 2008 high. IF we have 5 waves down, THEN look for an abc 3 wave corrective pattern. However, the alternate count is that we have a 3 wave pattern down into current support, in which case, then we can look for new highs to be made. Price action and pattern formation over the next couple of weeks should provide a better clue as to which pattern is actually unfolding.