The TSX-V/TSX ratio, the ratio of the speculative Canadian market vs. the senior Canadian market, which I use as a guide to speculative inflation trades, has spiked to take out the SMA 50, which it had failed to do on every bounce this year. While not proof of a bottom, it sure is the first required step to making one. Recall we used this indicator in May of 2020 to project the coming inflation trades.
As for stand-alone TSX-V, it is making a solid move toward the up-trending SMA 200. Take that back and things could get wild in the spec inflation trades. Fail and… not so much. But again, first things first and this index is on the move as it appears now.
