S&P 500: Any gas left in the tank?

By Colin Twiggs
March 28th, 2013 9:30 p.m. ET (12:30 am AEDT)

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The S&P 500 managed to close at a new high, with most fund managers reporting good results for the quarter, but does this signal a new bull market or a last-gasp effort to lock in performance bonuses before the market subsides into a correction?

While markets may be rising, there is strong risk aversion.

Downtown Josh Brown

This is definitely not a classic bull market.

One also needs to be wary of September and March quarter-ends. They often represent significant turning points, with new highs (red arrows) and new lows (green arrows) frequently proving unsustainable.

S&P 500

* Target calculation: 1530 + ( 1530 - 1485 ) = 1575

While there is no sign of divergence on 13-week Twiggs Money Flow, which would indicate unusual selling pressure, it is important to remain vigilant over the next quarter rather than blindly follow the herd. Bearish (TMF) divergence or reversal of the S&P 500 below 1500 would warn of a correction.

Don't hurry. Don't worry. You're only here for a short visit. So don't forget to stop and smell the roses.

~ golfing great, Walter Hagen