US & Canada: Rising buying pressure
By Colin Twiggs
October 28th, 2013 3:00 am EDT (5:00 pm AEDT)
The S&P 500 short retracement at 1750 is a bullish sign, confirming the advance to 1800*. Rising 21-Day Twiggs Money Flow indicates buying pressure. Reversal below 1730 is most unlikely at present, but would warn of a test of primary support at 1650.
* Target calculation: 1730 + ( 1730 - 1650 ) = 1810
VIX below 15 flags low market risk.
Dow Jones Industrial Average is headed for a test of resistance at 15700; breakout would offer a target of 16600*. Recovery above the descending trendline on 13-week Twiggs Money Flow would negate the earlier bearish divergence. Breach of 14800 is unlikely, but would warn of a reversal.
* Target calculation: 15700 + ( 15700 - 14800 ) = 16600
The Nasdaq 100, with 13-week Twiggs Money Flow troughs well above zero, indicates strong buying pressure.
Canada's TSX 60 is advancing toward its target of 800*, the trough above zero on 13-week Twiggs Money Flow indicating strong buying pressure. Reversal below 740 is now most unlikely.
* Target calculation: 740 + ( 740 - 680 ) = 800
It is hard to let old beliefs go. They are familiar. We are comfortable with them and have spent years building systems and developing habits that depend on them. Like a man who has worn eyeglasses so long that he forgets he has them on, we forget that the world looks to us the way it does because we have become used to seeing it that way through a particular set of lenses. Today, however, we need new lenses. And we need to throw the old ones away.
~ Kenich Ohmae