By Colin Twiggs
March 28th, 2015 1:00 p.m. AEDT (10:00 p.m. EDT)
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 found short-term support at 2050, but declining 21-day Twiggs Money Flow indicates medium-term selling pressure. Breach of support would signal a correction to test the band of primary support between 1970 and 2000. Recovery above 2080 is less likely at present, but would indicate another test of 2120.
* Target calculation: 2100 + ( 2100 - 2000 ) = 2200
Long-term, the S&P 500 remains bullish and CBOE Volatility Index (VIX) continues to indicate low risk typical of a bull market.
Dow Jones Industrial Average also retreated and is testing medium-term support at 17500/17600 on the weekly chart. Declining 13-week Twiggs Money Flow indicates moderate selling pressure. Breach of 17500 would test primary support at 17000, while recovery above 18000 would signal another primary advance — confirmed if there is follow-through above 18300.
* Target calculation: 18000 + ( 18000 - 17000 ) = 19000
Germany's DAX encountered resistance at 12000, but selling pressure looks weak. Rising 13-week Twiggs Money Flow indicates long-term buying pressure. Expect support at 11500. Recovery above 12000 would suggest an advance to 12500*.
* Target calculation: 10000 + ( 10000 - 7500 ) = 12500
The Footsie retreated from 7000. Declining 13-Week Twiggs Money Flow indicates medium-term selling pressure. Breach of support at 6700 would warn of a correction to test primary support at 6150/6200, while respect of support at 6700 would be a bullish sign. Breakout above 7000 would offer a long-term target of 8000*.
* Target calculation: 7000 + ( 7000 - 6000 ) = 8000
China's Shanghai Composite Index continues its primary advance. Recovery of 13-week Twiggs Money Flow above its descending trendline strengthens the signal. Retracement to test the new support level at 3400 remains likely, but expected to be weak.
* Target calculation: 3400 + ( 3400 - 2400 ) = 4400
Japan's Nikkei 225 Index is retracing. Breach of support at 19000 would signal a correction to test 18000, but respect is more likely and recovery above 19500 would indicate another attempt at the long-term target of 20000*. Rising 13-week Twiggs Momentum indicates long-term buying pressure.
* Target calculation: 18000 + ( 18000 - 16000 ) = 20000
India's Sensex is faltering at resistance at 30000. Reversal of 13-week Twiggs Money Flow below zero warns of strong selling pressure. Breach of primary support at 26500/27000 would signal a reversal. Respect of the primary trendline, however, would establish a sound base for further advances.
The ASX 200 continues to hesitate at 6000. Declining 13-week Twiggs Money Flow indicates moderate (medium-term) selling pressure. Reversal below 5750 is unlikely, but would warn of a correction to 5500. Breakout above 6000 would offer a (medium-term) target of 6250*.
* Target calculation: 6000 + ( 6000 - 5750 ) = 6250
The measure of who we are is what we do with what we have.
~ Vince Lombardi
Research & Investment Pty Ltd is a Corporate Authorized Representative (AR Number 384 397) of Andika Pty Ltd which holds an Australian Financial Services Licence (AFSL 297069).
The information on this web site and in the newsletters is general in nature and does not consider your personal circumstances. Please contact your professional financial adviser for advice tailored to your needs.
Research & Investment Pty Ltd ("R&I") has made every effort to ensure the reliability of the views and recommendations expressed in the reports published on its websites and newsletters. Our research is based upon information known to us or which was obtained from sources which we believe to be reliable and accurate.
No guarantee as to the capital value of investments, nor future returns are made by R&I. Neither R&I nor its employees make any representation, warranty or guarantee that the information provided is complete, accurate, current or reliable.
You are under no obligation to use these services and should always compare financial services/products to find one which best meets your personal objectives, financial situation or needs.
To the extent permitted by law, R&I and its employees, agents and authorised representatives exclude all liability for any loss or damage (including indirect, special or consequential loss or damage) arising from the use of, or reliance on, any information. If the law prohibits the exclusion of such liability, such liability shall be limited, to the extent permitted by law, to the resupply of the said information or the cost of the said resupply.
Important Warning About Simulated Results
Research & Investment (R&I) specialise in developing, testing and researching investment strategies and systems. Within the R&I web site and newsletters, you will find information about investment strategies and their performance. It is important that you understand that results from R&I research are simulated and not actual results.
No representation is made that any investor will or is likely to achieve profits or losses similar to those shown.
Simulated performance results are generally prepared with the benefit of hindsight and do not involve financial risk. No modeling can completely account for the impact of financial risk in actual investment. Account size, brokerage and slippage may also diverge from simulated results. Numerous other factors related to the markets in general or to the implementation of any specific investment system cannot be fully accounted for in the preparation of simulated performance results and may adversely affect actual investment results.
To the extent permitted by law, R&I and its employees, agents and authorised representatives exclude all liability for any loss or damage (including indirect, special or consequential loss or damage) arising from the use of, or reliance on, any information offered by R&I whether or not caused by any negligent act or omission.