Globe editors have posted this research report with permission of Phases & Cycles Inc. This should not be construed as an endorsement of the report's recommendations. For more on The Globe's disclaimers please read here. The following is excerpted from the report:

Toronto benefited from New York's recent strength. We said in our last Market Comment that the S&P/TSX Composite Index was showing signs of weakening after its big autumn advance. Price action since early November was sideways and indicators of internal strength were under pressure. But the S&P/TSX Composite Index has succeeded in staying above its 50-day moving average. Any decisive move above last week's new all-time high at 16,188 will open a path to our next upside target at 17,000. But any sustained move below the 50-day moving average and nearby support in the 15,800 to 15,850 area will indicate that a correction is underway. Toronto's challenge remains the same – can it protect the bulk of the substantial gains made in September and October?

New York is fast approaching a crossroads. It can continue to ride the bullish sleigh, extend the advance that began in August and reach new all-time highs. The bears have gone into hibernation for the past few months, however they could make a mid-winter appearance sometime in January to disrupt the bull's party.

Story continues below advertisement

Read the full report here.

Globe app users click here for the full report

Read other research reports here