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S&P 500 and Nasdaq 100 correction

By Colin Twiggs
May 15th, 2012 1:00 a.m. ET (5:00 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.


The S&P 500 broke support at 1340 to confirm the correction. Initial target is 1300. Reversal of 21-day Twiggs Money Flow below zero confirms medium-term selling pressure signaled by an earlier bearish divergence . Recovery above 1360 is most unlikely but would warn of a bear trap.

S&P 500

* Target calculation: 1350 - ( 1400 - 1350 ) = 1300

A similar 21-day Twiggs Money Flow signal on the Nasdaq 100 warns of medium-term selling pressure. Retracement respected resistance at 2630, confirming a correction. Initial target is 2500*.

Nasdaq 100

* Target calculation: 2630 - ( 2760 - 2630 ) = 2500



The way to crush the bourgeoisie is to grind them between the millstones of taxation and inflation.

~ Vladimir Ilyich Lenin

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