Canadian TSX Index Breaking Resistance

The S&P 500 is heading toward its prior high, and the Canadian TSX index is already making a move through its.

The TSX has been a chronic under-performing relative to the S&P500, and despite the fact the Canadian is breaking out first, it is still lagging the S&P 500 overall.

The red line shows the TSX index versus a hedged S&P 500 index ETF (ZSP). This eliminates the currency differences/fluctuations for people who are in Canada but also invest in the S&P 500.

I don't mind the look of the Canadian market assuming the breakout holds. But it's hard to overlook that the Canadian market just has not done as well as the US market over the years. I continue to contribute more aggressively to US-focused funds within my retirement (long-term) account, than to Canadian-focused funds.

Gold looks to have kicked off a long-term bull market. That will be good for that sector of the Canadian economy, although that can be benefited from more directly by accumulating gold funds and gold stock funds.

Disclosure: Own ZSP as a long term hold and routinely add to the position.