S&P500 breakout

By Colin Twiggs
July 22nd, 2013 2:30 am EDT (4:30 pm AET)

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Short candles on the S&P 500 indicate some opposition, but breakout above resistance at 1675 suggests an advance to 1800*. Follow-through above 1700 would strengthen the signal. The 21-day Twiggs Money Flow trough above zero indicates medium-term buying pressure — and a healthy up-trend. Reversal below 1650 is unlikely, but would warn of another test of primary support at 1560.

S&P 500

* Target calculation: 1680 + ( 1680 - 1560 ) = 1800

The VIX below 15 suggests low market risk.

VIX Index

The TSX Composite Index is advancing towards resistance at 12900. Breakout would signal a primary advance, with a long-term target of 14000*. Follow-through above 13000 would strengthen the signal. Breach of the declining trendline on 13-week Twiggs Money Flow would also suggest improving buying pressure. Respect of 12900, however, and reversal of 13-week TMF below zero, would warn of another test of 11750.

TSX Composite

* Target calculation: 13000 + ( 13000 - 12000 ) = 14000

Don't take action with a trade until the market, itself, confirms your opinion. Being a little late in a trade is insurance that your opinion is correct. In other words, don't be an impatient trader.

~ Jesse Livermore