If you have been following this blog you are already aware that I follow the market and periodically make forecasts.
Well...the US stock market in general is looking very weak from a technical perspective. I won't bore you with the details but the entire US Stock Market looks like it could drop, at least another 20 % or more. The Dow Jones Transportation Average is leading the pack downward at this time. I expect to see a further decline in the DJIA, DJTA, SP500 and Nasdaq.
I'm not sure how much of the US drop will spill over into Canada but the risk is very high that it could. My best guess is that the TSX Composite will also go significantly lower. After the TSX Composite run up from about 6,000 to 14,000 since 2002, a retracement in the order of 50 %, back to ~10,000 would not be unusual. It would be well within normal market action.