Nasdaq leads market higher
By Colin Twiggs
February 17th, 2014 3:30 am ET (7:30 pm AEDT)
The Nasdaq 100 broke through its January high, signaling an advance to 3800*. Retreat below the (secondary) rising trendline is unlikely, but would test primary support at 3400. Another 13-week Twiggs Money Flow trough high above zero indicates strong buying pressure.
* Target calculation: 3600 + ( 3600 - 3400 ) = 3800
The S&P 500 is testing similar resistance at 1850. Breakout would signal an advance to 1950*. Respect is unlikely, given the Nasdaq breakout, but would warn of another correction. Completion of a 13-week Twiggs Money Flow trough above zero would be a bullish sign.
* Target calculation: 1850 + ( 1850 - 1750 ) = 1950
CBOE Volatility Index (VIX) below 20 suggests low risk typical of a bull market.
While legislation can stimulate and encourage, the real creative ability which builds up and develops the country, and in general makes human existence more tolerable and life more complete, has to be supplied by the genius of the people themselves. The Government can supply no substitute for enterprise.
~ Calvin Coolidge