The Dow Industrial Average is consolidating above the first line of short-term support (11500) after briefly testing resistance at the May high of 11650.

Medium Term: Continued narrow consolidation below the resistance level would be a strong bullish sign, while a close below 11330 would signal a retracement to test primary support at 10700. I remain concerned over low volumes on the recent August-September up-trend and question buyers' ability to break through long-term resistance at 11650/11750. Twiggs Money Flow (21-day), however, is rising above zero, signaling accumulation.

Long Term: The Dow continues in a primary up-trend, with resistance at the all-time high of 11750 and support at 10700. A longer-term view of Twiggs Money Flow (21-day) shows the indicator whipsawing around zero, indicating continued uncertainty.

The Dow Jones Transportation Average respected resistance at 4450 (the former primary support level). A down-swing that carries below the August low of 4140 would confirm the primary down-trend. On the other hand, continued failure to break below 4140 (or a rise above 4450) would signal trend weakness. Lead indicators Fedex and UPS follow a similar pattern, although this may reverse if lower fuel prices are sustained.

The Nasdaq Composite Index is rallying strongly above the 100-day moving average, signaling a healthy up-trend, and Twiggs Money Flow (21-day) rising steeply above zero, signals strong medium-term accumulation. Expect a test of 2370.

The S&P 500 respected resistance at the May high of 1325. Narrow consolidation below this level (or an upward breakout) would be a bullish sign, signaling a test of the upper border of the linear regression channel.

Medium Term: Twiggs Money Flow (21-day) rising steeply above zero signals medium-term accumulation.

Long Term: The S&P 500 continues in a slow primary up-trend, with support at 1220.

United Kingdom

The FTSE 100 posted a large red candle on Friday, low volume signaling an absence of buying support. Penetration of support at 5800/5820 would also break the long-term trendline, warning of a primary trend reversal. 

Medium Term: Twiggs Money Flow (21-day) is trending downwards, signaling medium-term distribution. 

Long Term: The primary up-trend continues, with primary support at 5500.

Japan

The Nikkei 225 closed below support at 15700 on Friday, signaling a slowing up-trend. A pull-back that respects the new resistance level would signal a test of primary support.

Medium Term: Twiggs Money Flow (21-day) continues to oscillate around the zero line, signaling uncertainty. The next target for the up-trend is the April high of 17500, but we would need an improvement in TMF for this to occur.

Long Term: The primary up-trend remains up, with support at 14200.

ASX Australia

The All Ordinaries intermediate down-swing encountered support at 4940 (last week's low). The tall shadow and exceptional volume on Thursday [Th] show sellers overwhelming an attempted rally, but buyers remain committed -- identified by a long tail and strong volume on Friday. Expect strong support between 4940 and 4880.

Medium Term: Failure of sellers to test 4880 would be a bullish sign, signaling that buyers still have the upper hand. A rise above 5100 would signal a test of the upper border of the regression channel (after overcoming resistance at 5300/5350). A break below 4880, however, would signal that the down-trend has resumed. Twiggs Money Flow (21-day) dipped below zero, signaling short-term distribution, but remains positive in the longer term.

Long Term: The All Ordinaries continues in a primary up-trend with support at 4800. 

My reference to 4800 as the primary support level is open to debate. We had a secondary correction from 5300 to 4800, followed by a recovery to test resistance at 5100, then narrow consolidation between 4900 and 5100 for the next 3 months. If we interpret the consolidation as a line, then 4800 is the primary support level. If not, then 4300 (or even 3900) remains as primary support for the present.