S&P 500 and Nasdaq test resistance
By Colin Twiggs
January 17th, 2012 2:00 a.m. ET (6:00 p.m. AET)
The S&P 500 index is testing resistance at 1300. Breakout would signal a primary up-trend with a target of 1450* for the initial advance. Mild bearish divergence on 13-week Twiggs Money Flow warns of selling pressure, however, and reversal below the rising trendline would indicate another test of primary support at 1160.
* Target calculations: 1300 + ( 1300 - 1150 ) = 1450
The Nasdaq 100 is also testing resistance, at 2400. Rising 63-day Twiggs Momentum and 13-week Twiggs Money Flow both suggest an upward breakout, which would offer a target of 2800* for the initial advance.
* Target calculations: 2400 + ( 2400 - 2000 ) = 2800
Treasury yields are falling, indicating a flight to safety. Uncertainty in Europe and China is likely to hurt the market and we should only accept bull signals if they have strong confirmation.
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