Bullish VIX readings for the S&P 500

By Colin Twiggs
January 15th, 2014 2:30 am ET (6:30 pm AEDT)

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Research & Investment: 12 month performance

ASX200 Prime Momentum returned +32.88% for the 12 months ended 31st December, outperforming the ASX200 Accumulation Index by +12.58%. Comparable results for the S&P 500 are not yet available: the strategy only commenced in November 2013.

Bullish VIX readings for the S&P 500

Declining CBOE Volatility Index (VIX) readings for the S&P 500 continue to indicate a bull market.

VIX Index

The S&P 500 itself is headed for another test of short-term resistance at 1850. Breakout would confirm the target of 1910*, while respect would warn of a correction, especially if followed by reversal below 1800. The recent decline in 13-week Twiggs Money Flow was secondary in nature and less severe than the corrections in June and August 2013; troughs high above the zero line are a long-term bull signal.

S&P 500

* Target calculation: 1810 + ( 1810 - 1710 ) = 1910

The Nasdaq 100 continues its accelerating up-trend, with Twiggs Money Flow troughs above the zero line indicating long-term buying pressure. The last decent correction was in June 2013 and continuation of the advance much further without a correction would suggest the market is becoming over-extended.

Nasdaq 100

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