S&P 500 and Nasdaq 100 advance
By Colin Twiggs
November 4th, 2014 3:00 am ET (7:00 pm AEDT)
Advice herein is provided for the general information of readers and does not have regard to any particular person's investment objectives, financial situation or needs. Accordingly, no reader should act on the basis of any information contained herein without first having consulted a suitably qualified financial advisor.
The S&P 500 is likely to retrace to test the new support level at 2000. Respect would confirm a fresh advance with a target of 2150*. Rising 13-week Twiggs Money Flow indicates buying pressure. Reversal below 2000 is unlikely, but would warn of a bull trap (correction).
* Target calculation: 2000 + ( 2000 - 1850 ) = 2150
CBOE Volatility Index (VIX) at 14 continues to indicate low risk typical of a bull market.
The Nasdaq 100 is in a similar situation, having broken resistance at 4100. Retracement that respects support at 4000 would confirm a fresh advance, offering a target of 4500*. Recovery of 13-week Twiggs Money Flow above 35% would flag buying pressure.
* Target calculation: 4100 + ( 4100 - 3700 ) = 4500
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