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Dow and S&P 500 test key resistance

By Colin Twiggs
February 13th, 2012 4:00 a.m. ET (9:00 p.m. AET)

These extracts from my trading diary are for educational purposes and should not be interpreted as investment or trading advice. Full terms and conditions can be found at Terms of Use.


Dow Jones Industrial Average is testing resistance at 12800. A large bearish divergence would be completed if 13-week Twiggs Money Flow retreated below 10% — and would warn of a bull trap. Reversal below medium-term support at 12300 and the rising trendline would also warn of trend weakness, while respect of these levels would indicate a primary advance to 13400*.

Dow Jones Industrial Average

* Target calculations: 12300 + ( 12300 - 11200 ) = 13400

The S&P 500 displays similar weakness on 13-week Twiggs Money Flow, but rising 63-day Twiggs Money Flow indicates trend strength. Breakout above 1370 would indicate an advance to 1450*.

S&P 500 Index

* Target calculations: 1300 + ( 1300 - 1150 ) = 1450

The Nasdaq 100 made a strong breakout above 2400, indicating a primary up-trend. Expect a retracement to test the new support level (2400); respect would confirm the up-trend.

Nasdaq 100 Index

* Target calculations: 2400 + ( 2400 - 2150 ) = 2650



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