Pausing for breath
By Colin Twiggs
July 22, 2016 7:00 p.m. EDT (9:00 a.m. AEST)
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Pausing for breath
Dow Jones Global Index is pausing for breath after having broken resistance at 316. Narrow consolidation above a new support level is a bullish sign. Follow through above the October 2015 high of 320 would add further confirmation. Momentum troughs above zero also signal trend strength.
The S&P 500 has similarly paused for breath, consolidating in a narrow flag over the last week. Flags are normally a continuation signal but I suspect we may see retracement to test the new support level at 2130 before the index advances much further.
* Target calculation: 2100 + ( 2100 - 1800 ) = 2400
Rising 13-week Momentum on the Dow Jones Industrial Average weekly chart signals a primary up-trend. Retracement that respects support at 18000/18300 would confirm.
* Target calculation: 18000 + ( 18000 - 15500 ) = 20500
Germany's DAX recovered above 10000 after finding strong support, evidenced by three large tails, at 9500. Breakout above 10500 would confirm a primary up-trend.
* Target calculation: 10500 + ( 10500 - 9500 ) = 11500
Boosted by the falling Pound, the Footsie has already signaled a primary up-trend. Retracement that respects 6500 would confirm.
* Target calculation: 6500 + ( 6500 - 6000 ) = 7000
The ASX 200 broke through resistance at 5400, signaling a primary up-trend. Expect retracement to test the new support level. The trough above zero on 13-week Twiggs Momentum suggests a healthy up-trend.
* Target calculation: 5400 + ( 5400 - 5100 ) = 5700
In Venice in the Middle Ages there was once a profession for a man called a codega—a fellow you hired to walk in front of you at night with a lit lantern, showing you the way, scaring off thieves and demons, bringing you confidence and protection through the dark streets.
~ Elizabeth Gilbert: Eat, Pray, Love