US: Buying pressure easing
By Colin Twiggs
October 2nd, 2012 3:00 a.m. ET (5:00 p.m. AET)
The September Quarter has ended, bonuses have been determined, and buying pressure is now likely to ease. The S&P 500 is testing resistance after breaking support at 1450. Bearish divergence on 21-day Twiggs Money Flow indicates selling pressure. Respect of 1450 is likely and would indicate a test of 1400.
The Nasdaq 100 weekly chart shows the index testing support at 2800/2750. Bearish divergence on 63-day Twiggs Momentum indicates a weakening up-trend; reversal below zero would warn of a primary down-trend. Failure of support would strengthen the signal. Respect of support is unlikely but would indicate another advance.
Bellwether transport stock Fedex is testing support at $84. Narrow range of last week's candle indicates selling pressure — as does reversal of 13-week Twiggs Money Flow below zero. Downward breakout would confirm the primary down-trend earlier signaled by 63-day Twiggs Momentum below zero. A Fedex down-trend would warn of slowing activity in the broader economy.
There has been a renewed search for investible assets going on. Not the old, indiscriminate,
invest-in-anything-with-a-high-return-and-ask-no-questions "search-for-yield". It has so far
been a much more calculated hunt. Not so much for return on capital but return of capital......
~ Paul Fisher, Executive Director for Markets at the Bank of England