GDP rises but Dow hesitant

By Colin Twiggs
October 28, 2016 9:30 p.m. EDT (12:30 pm AEST)

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Global

Dow Jones Global Index continues to test support at 316. Respect of the rising trendline followed by recovery above 328 would complete a bullish inverted scallop (like an upside-down fish hook) signaling another strong advance. Breach of 316 is equally likely, however, and would offer a target of 290/300.

North America

Quarterly GDP improved to an annual rate of 2.8%, following the recent rise in private weekly earnings.

Bellwether transport stock Fedex respected its new support level at 170. Follow-through above 180 would confirm a primary advance, indicating rising economic activity in the US.

Bearish divergence on Twiggs Money Flow continues to warn of long-term selling pressure on the Dow Jones Industrial Average. Breach of 18000 would warn of a test of primary support at 17000. Recoverty above 18500 is less likely but would signal another primary advance.

Australia

The ASX 200 is headed for a test of primary support at 5200. Breach is likely and would signal a primary down-trend. Declining Twiggs Money Flow, below zero, warns of strong selling pressure.

Nature smiles at the union of freedom and equality in our utopias. For freedom and equality are sworn and everlasting enemies, and when one prevails the other dies.

~ Will Durant, The Story of Philosophy