S&P 500 and Nasdaq bouyant
By Colin Twiggs
November 18th, 2013 1:30 am ET (5:30 pm AEDT)
The S&P 500 is advancing strongly but expect some resistance at the target of 1800*. penetration of the descending trendline on 13-week Twiggs Money Flow suggests that selling pressure is easing. Reversal below 1750 is unlikely at present, but would warn of a correction to at least the secondary trendline at 1700. Short corrections are indicative of long-term buying pressure.
* Target calculation: 1725 + ( 1725 - 1650 ) = 1800
Bellwether transport stock Fedex exceeded its target of $130*, with rising Twiggs Money Flow indicating strong buying pressure. A bullish sign for the US economy.
* Target calculation: 100 + ( 100 - 70 ) = 130
CBOE Volatility Index (VIX) below 15 continues to indicate low market risk.
The Nasdaq 100 continues its accelerating up-trend, breaking resistance at 3400 after a brief consolidation. Rising Twiggs Money Flow, with troughs above the zero line, indicates strong buying pressure. Target for the advance is 3550*. Accelerating trends, or blow-offs, enjoy rapid gains but inevitably end with a sharp fall.
* Target calculation: 3400 + ( 3400 - 3250 ) = 3550
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