S&P500 support but TSX bearish

By Colin Twiggs
July 29th, 2013 3:00 am EDT (5:00 pm AET)

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The S&P 500 ran into resistance at 1700, but long tails on the last two days indicate support at 1675. Follow-through above 1700 would offer a target of 1800*. The 21-day Twiggs Money Flow trough above zero indicates a healthy up-trend, but a lower peak than May would warn of selling pressure. Reversal below support at 1650 is unlikely, warning of another test of primary support at 1560.

S&P 500

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

The VIX below 15 indicates historically low market risk.

VIX Index

Canada's TSX 60 VIX is similarly bullish.

TSX 60 VIX Index

The TSX Composite Index encountered resistance below 12900, however, and declining 13-week Twiggs Money Flow warns of continued selling pressure. Respect of 12900 would indicate another test of 11750. Breakout above 12900 is less likely, but would offer a long-term target of 14000*.

TSX Composite

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

I believe there are no good stocks or bad stocks; there are only money making stocks. So there is no good direction to trade, short or long; there is only the money-making way to trade.

~ Jesse Livermore