Home Site Map About Us Privacy Policy Advertise (pdf) Contact Us
 
 
sitesearch
 

US: Continued selling pressure

By Colin Twiggs
October 8th, 2012 3:00 a.m. ET (6:00 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.


Resistance on the S&P 500 has shifted from 1450 to 1475, Friday's weak close and declining 21-day Twiggs Money Flow indicate selling pressure. Breakout above 1475 would signal a primary advance, while reversal below 1430 would warn of a correction.

S&P 500

* Target calculation: 1420 + ( 1420 - 1280 ) = 1560

The Nasdaq 100 (weekly chart) is similarly 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. Respect of support is would indicate another advance, while failure would strengthen the bear signal.

Nasdaq 100

* Target calculation: 2800 + ( 2800 - 2450 ) = 3150



Markets are fundamentally volatile. No way around it. Your problem is not in the math. There is no math to get you out of having to experience uncertainty.

.....To avoid whipsaw losses, stop trading.

~ Ed Seykota

How Good Is Your Market Analysis?
Compare our market views.





The weekly Trading Diary offers fundamental analysis of the
economy and technical analysis of major market indices,
gold, crude oil and forex.
The monthly What's New newsletter covers new articles
on Trading and the Economy, as well as new software updates.


 
Top of Page