S&P 500 reflects bullish LT sentiment
By Colin Twiggs
October 15th, 2013 3:00 am EDT (5:00 pm AET)
The September quarter-end often heralds a correction as fund managers re-balance their portfolios and shed under-performing stocks. Congressional gridlock raised the probability even higher, but the market has brushed this aside, reflecting bullish long-term sentiment.
The S&P 500 rallied sharply off support at 1650. Follow-through above 1710 would indicate an advance to 1790/1800*. A 21-day Twiggs Money Flow trough close to zero indicates buying pressure. Reversal below 1675 is unlikely at present, but would warn of a test of primary support at 1630.
* Target calculation: 1710 + ( 1710 - 1630 ) = 1790
VIX retreated below 20, signaling low/moderate market risk.
Men seek retreats for themselves, houses in the country, sea-shores, and mountains; and thou too art wont to desire such things very much. But this is altogether a mark of the most common sort of men, for it is in thy power whenever thou shalt choose to retire into thyself. For nowhere either with more quiet or more freedom from trouble does a man retire than into his own soul.
~ Marcus Aurelius