Selling pressure continues but the primary trend is up
By Colin Twiggs
April 23rd, 2014 9:00 p.m. EDT (11:00 a:m AET)
The S&P 500 is testing resistance at 1880 and follow-through above 1900 would signal another primary advance. Bearish divergence on 13-week Twiggs Money, however, continues to warn of selling pressure and another secondary correction remains likely. But the primary trend is up.
VIX below 14 suggests low risk typical of a bull market.
The Nasdaq 100 is testing resistance at 3600/3650. Breakout would suggest another advance, while respect would be cause for concern. Reversal below 3400 would complete a head and shoulders reversal with a target of 3100* at the primary trendline. 13-Week Twiggs Money Flow below zero indicates strong selling pressure.
* Target calculation: 3400 + ( 3700 - 3400 ) = 3100
I would suggest that even a Nasdaq fall to 3100 would not disrupt the bull market. Penetration of the primary trendline at 3100, however, would be cause for concern.
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