Bullish lead-in to the New Year
By Colin Twiggs
December 29th, 2013 5:00 p.m. ET (9:00 a:m AEDT)
The S&P 500 broke resistance at 1810, signaling an advance to 1910*. Troughs high above zero on 13-week Twiggs Money Flow indicate strong buying pressure.
* Target calculation: 1810 + ( 1810 - 1710 ) = 1910
The FTSE 100 completed its correction with a break above the descending trendline. Troughs above zero on 13-week Twiggs Money Flow indicate buying pressure. Breakout above 6800 would offer a target of 7200*, but expect strong resistance at the 1999 high of 6950/7000.
* Target calculation: 6800 + ( 6800 - 6400 ) = 7200
The Dow Jones Euro Stoxx 50 broke resistance at 3100, signaling an advance to 3350*. Troughs above zero on 13-week Twiggs Momentum indicate a healthy up-trend. Retracement to test the new support level is likely; respect would strengthen the bull signal.
* Target calculation: 3100 + ( 3100 - 2850 ) = 3350
Germany's DAX similarly broke resistance at 9400, offering a target of 10200*. Troughs high above zero on 13-week Twiggs Money Flow indicate strong buying pressure.
* Target calculation: 9400 + ( 9400 - 8600 ) = 10200
India's SENSEX is testing resistance at 21200 after a correction that respected support at 20200. Breakout would signal an advance to 22200*. A 13-week Twiggs Money Flow trough above zero would indicate buying pressure and a healthy up-trend.
* Target calculation: 21200 + ( 21200 - 20200 ) = 22200
Japan's Nikkei 225 broke resistance at 16000, supported by a strong rise in the Dollar/Yen exchange rate. Breakout signals a primary advance with a long-term target of 19000*. Completion of a 13-week Twiggs Money Flow trough above zero suggests buying pressure and a healthy up-trend.
* Target calculation: 16000 + ( 16000- 13000 ) = 19000
A single cloud on the horizon, the Shanghai Composite Index is testing primary support at 2080. Failure of support would signal a primary down-trend with an immediate target of 1900*. Bearish divergence on 21-day Twiggs Money Flow indicates medium-term selling pressure, but recovery above zero would suggest support.
* Target calculation: 2080 - ( 2260 - 2080 ) = 1900
The ASX 200 is lagging other markets because of negative influence from China. Bearish divergence on 13-week Twiggs Money Flow indicates selling pressure. Respect of resistance at 5450 would be cause for concern if followed by reversal below 5300. Breakout above 5450 and completion of a trough above zero on 13-week Twiggs Money Flow, however, would signal another primary advance, with a target of 5900*.
* Target calculation: 5450 + ( 5450 - 5000 ) = 5900
The difference between a successful person and others is not a lack of strength, not a lack of knowledge, but rather a lack of will.
~ Vince Lombardi