S&P 500: No sign of a correction

By Colin Twiggs
December 9th, 2013 2:30 am ET (6:30 pm AEDT)

These extracts from my trading diary are for educational purposes. Any advice contained therein is provided for the general information of readers and does not have regard to any particular person's investment objectives, financial situation or needs and must not be construed as advice to buy, sell, hold or otherwise deal with any securities or other investments. Accordingly, no reader should act on the basis of any information contained therein without first having consulted a suitably qualified financial advisor. Full terms and conditions can be found at Terms of Use.

The S&P 500 has reached its target of 1800 for the current advance, suggesting the market is due for a correction. But there is no sign of selling pressure on 13-week Twiggs Money Flow. Follow-through above 1820 would suggest an accelerating up-trend — with sharper gains and shorter retracements. Reversal below short-term support is less likely, but would warn of a correction.

S&P 500

* Target calculation: 1725 + ( 1725 - 1650 ) = 1800

CBOE Volatility Index (VIX) continues to indicate a bull market, with readings below 15.

VIX Index

We seem to be moving steadily in the direction of a society where no one is responsible for what he himself did, but we are all responsible for what somebody else did, either in the present or in the past.

~ Thomas Sowell