S&P 500 and Dow Industrials remain bearish

By Colin Twiggs
July 17th, 2012 4:00 a.m. ET (6:00 p.m. AET)

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The S&P 500 continues to test resistance at 1370 but declining 63-day Twiggs Momentum warns of a primary down-trend. Breach of the rising trendline would indicate a primary down-swing; confirmed if support at 1270 is broken. Reversal of 63-day Twiggs Momentum below zero would strengthen the bear signal. Breakout above 1420 is unlikely, but would signal an advance to 1570*.

S&P 500

* Target calculation: 1420 + ( 1420 - 1270 ) = 1570

The Dow Industrial Average is in a similar position, with bearish divergence on 13-week Twiggs Money Flow warning of selling pressure. Reversal of TMF below zero would indicate a primary down-trend.

Nasdaq 100

Success does not consist in never making mistakes but in never making the same one a second time.

~ George Bernard Shaw