In the old days before all the new etf’s came out we use to watch this index as a proxy for the small cap precious stocks. This Canadian small cap index also has other small cap companies in but it was all we had to gauge the strength of the juniors. Since the January low of this year it has been under the radar screen quietly rising in price. Today it looks like it maybe breaking out of a small bullish rising flag.
The long term monthly chart for the CDNX shows you just how undervalued this small cap index is as it hasn’t even climbed its way back above the 2008 crash low. When this index decides it’s time to move it usually does so in a strong impulse move either up or down. Another possible piece of the puzzle.