S&P 500 finds support

By Colin Twiggs
February 10th, 2014 3:00 am ET (7:00 pm AEDT)

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Research & Investment: Performance update

ASX200 Prime Momentum strategy returned +28.65%* for the 12 months ended 31st January 2014, outperforming the benchmark ASX200 Accumulation Index by +17.59%. The S&P 500 strategy, started in November 2013, returned 3.21% for the first 3 months, outperforming the S&P 500 Total Return Index by 1.21%.

* Results are unaudited and subject to revision.

S&P 500 finds support

The S&P 500 hammer candlestick on the weekly chart indicates support at 1750 and the secondary trendline. Follow-through above 1800 would strengthen the signal, suggesting an advance to 2000*. Breakout above 1850 would confirm. Recovery of 13-week Twiggs Money Flow above 40% (the most recent high) would indicate that the correction is over. Breach of 1750 seems unlikely, but would warn of a test of the primary trendline, around 1700.

S&P 500

* Target calculation: 1850 + ( 1850 - 1700 ) = 2000

CBOE Volatility Index (VIX) retreated below 20, suggesting low risk typical of a bull market.

VIX Index

I sincerely believe.... that banking establishments are more dangerous than standing armies; and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale.

~ Thomas Jefferson