Nasdaq leads market higher

By Colin Twiggs
February 17th, 2014 3:30 am ET (7:30 pm AEDT)

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The Nasdaq 100 broke through its January high, signaling an advance to 3800*. Retreat below the (secondary) rising trendline is unlikely, but would test primary support at 3400. Another 13-week Twiggs Money Flow trough high above zero indicates strong buying pressure.

* Target calculation: 3600 + ( 3600 - 3400 ) = 3800

The S&P 500 is testing similar resistance at 1850. Breakout would signal an advance to 1950*. Respect is unlikely, given the Nasdaq breakout, but would warn of another correction. Completion of a 13-week Twiggs Money Flow trough above zero would be a bullish sign.

* Target calculation: 1850 + ( 1850 - 1750 ) = 1950

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

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