TSX Composite - Stay out of the way in the Summer Heat

Yesterday's 214 point drop in the Toronto Composite index caused some anxiety, the market came back 74 points today, let's look at the daily chart, should we be worried? I drew all these trend lines to make a point, it is hard to tell where the market is going, seems to be all over the place since the beginning of the year, however since April we are clearly moving lower. Maybe the weekly chart will provided another clue.

Below is the weekly chart for the Toronto stock exchange composite index, the nice upwards trajectory of 2013 through 2014 is clearly over. the index is locked in a trading range of about 2000 points since the all-time highs of September 2014, the stronger market in April was not able to break back up to that level and has since sold off. It is difficult to project where this market may take us, with that in mind a sideways market is perhaps the path of least resistance at the moment. For the most part after a sideways trend the previous trend would tend to take hold again.

With all that being said, there does not seem to be a compelling direction or reason to do much of anything over the next few months when looking at the Toronto market as a whole. Save some cash, write some call options to raise more cash and wait for the trend to resolve. Looks like a big old rattle snake undulating up and down....but moving in a straight line to no where in particular.