The iShares CDN LargeCap Index Fund (XIU) is now 7 weeks into an extended rally higher.  We have now been consolidating at critical overhead resistance at the $14.00-$14.50 focal point with a notable loss of momentum to the upside.  We are carefully watching to see if the market breaks higher or lower out of this zone.  If the XIU makes that move above the $14.50 area, it opens the window for a rally to the $15.00-$15.50 zone above.  Any breakdown below the $14.00 area will probably lead to a deeper profit taking cycle down to the $13.50 or lower.   Watch our Canadian Market Minute for more details.

http://www.optionsource.net/mediaplayercanadian.php

For more information on the XIU options, click on the link below:

http://www.m-x.ca/nego_cotes_en.php?symbol=XIU*&image.x=12&image.y=9

Regards,

Patrick Ceresna