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S&P 500 early rally

By Colin Twiggs
March 26th, 2012 10:30 p.m. ET (1:30 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.


The S&P 500 surprised with an early rally, before the end of the quarter. Breach of resistance at 1415 on the hourly chart signals a new primary advance. Short retracement indicates a healthy up-trend — as does a trough above the zero line on 24-hour (4 day) Twiggs Momentum.

S&P 500 Index Hourly Chart

Bearish divergence on 21-day Twiggs Money Flow indicates medium-term selling pressure, but recovery above 30% would negate this. Immediate target for the advance is 1450, while the long-term target is 1600*.

S&P 500 Index

* Target calculation: 1300 + (1300 - 1150) = 1450; 1350 + (1350 - 1100) = 1600



Our lives are defined by opportunities, even the ones we miss.

~ F. Scott Fitzgerald: The Curious Case of Benjamin Button

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