S&P500 support but TSX bearish
By Colin Twiggs
July 29th, 2013 3:00 am EDT (5:00 pm AET)
The S&P 500 ran into resistance at 1700, but long tails on the last two days indicate support at 1675. Follow-through above 1700 would offer a target of 1800*. The 21-day Twiggs Money Flow trough above zero indicates a healthy up-trend, but a lower peak than May would warn of selling pressure. Reversal below support at 1650 is unlikely, warning of another test of primary support at 1560.
* Target calculation: 1680 + ( 1680 - 1560 ) = 1800
The VIX below 15 indicates historically low market risk.
Canada's TSX 60 VIX is similarly bullish.
The TSX Composite Index encountered resistance below 12900, however, and declining 13-week Twiggs Money Flow warns of continued selling pressure. Respect of 12900 would indicate another test of 11750. Breakout above 12900 is less likely, but would offer a long-term target of 14000*.
* Target calculation: 13000 + ( 13000 - 12000 ) = 14000
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