US losing momentum
By Colin Twiggs
November 12th, 2012 2:30 a.m. ET (6:30 p.m. AET)
The S&P 500 found short-term support at 1370 after penetrating the rising trendline on a weekly chart. Loss of momentum warns that a top is forming. Reversal of 63-day Twiggs Momentum below zero would strengthen the signal. Breach of support would test the primary level at 1270.
Note how the S&P 500 lately moves in increments of fifty: 1270, 1320, 1370, 1420, 1470.......
The Nasdaq 100 similarly penetrated its rising trendline — shown here on a monthly chart — warning that a top is forming. 63-Day Twiggs Momentum (not shown) is below zero, strengthening the signal. Breach of primary support at 2450 would confirm the primary down-trend signaled by bearish divergence on 13-week Twiggs Money Flow. Respect of primary support is unlikely, but would indicate another advance.
* Target calculation: 2400 - ( 2800 - 2400 ) = 2000
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