Dow signals fresh advance
By Colin Twiggs
August 26th, 2014 3:30 am EDT (5:30 pm AEST)
Dow Jones Industrial Average recovered above 17000, signaling a fresh advance. Follow-through above 17150 would confirm a target of 17500*. Leveling off of 21-day Twiggs Money Flow in recent days, however, indicates (short-term) resistance. Reversal below 16950 is unlikely, but would warn of a test of 16750.
* Target calculation: 16500 + ( 16500 - 15500 ) = 17500
The S&P 500 is again testing resistance at 2000. Breakout would offer a target of 2250*. Recovery of 13-week Twiggs Money Flow above its recent (July 2014) high would confirm buying pressure. Reversal below 1950 is unlikely, but would warn of another test of (primary) support at 1900.
* Target calculation: 1500 + ( 1500 - 750 ) = 2250
Declining CBOE Volatility Index (VIX) readings suggest continuation of the bull market.
The Nasdaq 100 broke through the psychological level of 4000. Expect retracement to test the new support level. Respect is likely and would confirm another advance. Recovery of 13-week Twiggs Money Flow above its recent (July 2014) high would confirm buying pressure. Reversal below 4000 is unlikely but would warn of a test of support and the rising trendline at 3750.
* Target calculation: 4000 + ( 4000 - 3750 ) = 4250
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