Dow leads US climb
By Colin Twiggs
November 25th, 2013 2:30 am ET (6:30 pm AEDT)
Dow Jones Industrial Average is advancing strongly, with rising 13-week Twiggs Money Flow indicating medium-term buying pressure. Target for the advance is 16600*. Retracement to test the new support level remains likely, however, and respect would confirm the advance. Reversal below 15700 is unlikely, but would test the secondary rising trendline around 15500.
* Target calculation: 15700 + ( 15700 - 14800 ) = 16600
The S&P 500 is testing resistance at the target of 1800*. Rising 13-week Twiggs Money Flow indicates medium-term buying pressure. Reversal below 1750 would warn of a correction to the secondary trendline at 1700. Short corrections are indicative of strong buying pressure.
* Target calculation: 1725 + ( 1725 - 1650 ) = 1800
CBOE Volatility Index (VIX) continues below 15, indicating low market risk.
The Nasdaq 100 continues its accelerating up-trend. Rising Twiggs Money Flow, with higher troughs above the zero line, indicates strong buying pressure. Target for the advance is 3550*. Reversal below the latest trendline would warn of a correction. Short corrections and narrow consolidations reflect an accelerating trend, or blow-off. Steep gains, however, almost inevitably end with a sharp fall.
* Target calculation: 3400 + ( 3400 - 3250 ) = 3550
People who pride themselves on their "complexity" and deride others for being "simplistic" should realize that the truth is often not very complicated. What gets complex is evading the truth.
~ Thomas Sowell