TSX still in bull territory, says Nasdaq analyst

Over the last week, momentum in defensive names slowed, says Prab Sagoo, associate director at Nasdaq Advisory Services, in his weekly market commentary.

Read: 10 best defensive stocks

Also, he notes, “small caps bucked the trend and underperformed, while volumes were quite light last week.”

More highlights

• The TSX ended last week with gains of just under 1%, finishing at levels not seen since early August 2015. The TSX remains in bull market territory (at +26% from 52-week lows) and continues to sharply outperform year to date.
• The extent of the index’s surge this year is broad based, withalmost three quarters of the TSX trading above their 50-day moving averages, while almost four-fifths are above their longer 200 day moving averages.
• In the U.S., theFederal Reserve’s two-day meeting kicks off on Tuesday and will once again be keenly watched. No rate change is expected, but wording on the timeliness of next possible increase is key. Read: Fed minutes show uncertainties about jobs and Brexit
• Bank of Japan is also set to report on Friday.
• The domestic economic calendar will be notably busy at the end of the week where we haveMay GDP data headlining, with payroll and industrial production data also on the cards.

Staff

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