September 5, 2006 5:30 p.m. AET
The Dow Jones Industrial Average appears unaffected by the low volume, posting a strong blue candle on Friday [F], while Twiggs Money Flow (21-day) trends above zero, signaling accumulation. Expect a test of the all-time high at 11650, but low volume indicates a lack of enthusiasm from buyers and places a question-mark over the index's ability to break through this major resistance level.
The FTSE 100 is trending upwards, with Twiggs Money Flow (21-day) forming troughs above zero -- a sign of strong accumulation. One word of caution: There is insufficient evidence to conclude that the index has formed a rising wedge, but if the current rally respects the upper border of the pattern, that would be a bearish sign.
The Nikkei 225 pull-back respected the new support level at 15700, confirming the up-trend, and has started a new upward spike. The rally is likely to test resistance at 17500. Twiggs Money Flow (21-day) is whipsawing around the zero line, indicating continued uncertainty.
The All Ordinaries broke through resistance at 5100 and appears likely to test the May high of 5350. A pull-back that respects the new support level would confirm the breakout. Twiggs Money Flow (21-day) is above zero and rising, signaling accumulation.
Gold is testing resistance at $628/$630. A breakout above this level would signal a test of $655. If the level is respected, we should see a test of support at $600.