S&P 500 threatens breakout

By Colin Twiggs
January 25th, 2012 7:00 p.m. ET (11:00 am AET)

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The S&P 500 is headed for a test of the 2000/2007 highs at 1550/1565. Expect resistance but troughs above the zero line on 13-week Twiggs Money Flow indicate long-term buying pressure. Breakout is likely and would signal an advance to 1750*. Breach of the rising trendline would test of support at the long-term trendline — around 1400.

* Target calculation: 1550 + ( 1550 - 1350 ) = 1750

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~ David Hume, Scottish philosopher (1711 - 1776)