The Nasdaq 100 completed a small flag at [M], a continuation signal that would normally mean a test of resistance at 1630. However, the low volume is cause for concern -- we should see an upsurge in volume at the breakout. If volumes remain low over the next few days, the signal is not to be trusted. Twiggs Money Flow (21-day), however, is holding above the zero line, an encouraging sign.

The Dow Jones Industrial Average also completed a small flag, but the weak close and low volume indicate that further consolidation between 11250 and 11400 is likely. Consolidation above a new support level (11250), however, is a bullish sign in an up-trend. Twiggs Money Flow (21-day)is holding above the zero line, another positive sign.

The S&P 500 completed a similar pattern, with a weak close accompanied by low volume. Watch for a breakout above short-term resistance (1303) to signal a test of the 6-month high of 1325. The breakout should be accompanied by stronger volume, showing buyers commitment. Twiggs Money Flow (21-day) is rising -- a positive sign.