S&P 500 and Nasdaq 100
By Colin Twiggs
August 13th, 2012 5:00 a.m. ET (7:00 p.m. AET)
Bearish divergence on the S&P 500 Index (21-day Twiggs Money Flow) warns of increasing resistance as the index approaches 1420. Expect retracement to 1360/1380 followed by another attempt at 1420. Breakout would signal another primary advance. Reversal below the trend channel is unlikely but would warn of a correction to test primary support at 1280.
* Target calculation: 1420 + ( 1420 - 1280 ) = 1560
The Nasdaq 100 is headed for 2800 on the weekly chart. A 63-day Twiggs Momentum trough above zero indicates a healthy primary up-trend.
* Target calculation: 2800 + ( 2800 - 2450 ) = 3150
Bellwether transport stock Fedex, however, is edging lower. Reversal of 63-day Twiggs Momentum below zero warns of a primary down-trend. Failure of primary support at $84 would confirm the primary down trend signaled by the March-April double-top. That would warn of an economic down-turn.
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