S&P 500 and Nasdaq 100 correction

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

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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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