Dow finds support
By Colin Twiggs
September 16th, 2014 3:00 am EDT (5:00 pm AEST)
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Dow Jones Industrial Average found short-term support at 16950/17000. Follow-through above 17050 would indicate another attempt at 17150. And breakout above 17150 would offer a target of 17500*. Recovery of 21-day Twiggs Money Flow above 20% would indicate buying pressure. Reversal below support at 16950 is unlikely, but would test the rising trendline around 16700.
* Target calculation: 16500 + ( 16500 - 15500 ) = 17500
The S&P 500 is testing support at 1980/1985. Monday's long tail suggests short-term buying pressure; strengthened if 21-day Twiggs Money Flow starts to rise. Recovery above 2000 would indicate another rally. Follow-through above 2010 would signal an advance to 2100*. Failure of short-term support at 1980 is unlikely, but would warn of a correction to 1950.
* Target calculation: 2000 + ( 2000 - 1900 ) = 2100
CBOE Volatility Index (VIX) readings remain low, typical of a bull market.
The Nasdaq 100 is retracing to test its new support level at 4000. Respect of support is likely and would suggest an advance to 4250*. Failure of support at 4000, however, would warn of a correction to the primary trendline, around 3850. Completion of another 13-week Twiggs Money Flow trough above zero would strengthen the bull signal.
* Target calculation: 4000 + ( 4000 - 3750 ) = 4250
Firmness in enduring and exertion is a character I always wish to possess. I have always despised the whining yelp of complaint and cowardly resolve.
~ Robert Burns (1759 - 1796)
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