S&P 500 recovery

By Colin Twiggs
April 16th, 2014 8:00 pm EDT (10:00 am AET)

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Research & Investment: Performance update

Our ASX200 Prime Momentum strategy returned +42.10%* for the 12 months ended 31st March 2014, outperforming the benchmark ASX200 Accumulation Index by +28.64%.

* Results are unaudited and subject to revision.

ASX200 Prime Momentum

The S&P 500 Prime Momentum strategy has only been running five months, since November 2013, but returned 8.73%* for the period, compared to 6.28% for the S&P 500 Total Return Index.

S&P 500 recovers

The S&P 500 recovered above 1850, suggesting an advance to 1950. Breakout above 1900 would confirm. Recovery of 21-day Twiggs Money Flow above its descending trendline indicates that selling pressure is easing. Reversal below 1840 is less likely, but would warn of a test of primary support at 1750.

S&P 500

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

CBOE Volatility Index (VIX) retreated to 14, indicating low risk typical of a bull market.

VIX Index

The Nasdaq 100 found strong support at 3400 on the weekly chart. Recovery above 3600 would suggest an advance. Breakout above 3700 would confirm, offering a target of 4000*. Recovery of 13-week Twiggs Money Flow above zero would be a bullish sign. Respect of resistance at 3600 would be bearish.

Nasdaq 100

* Target calculation: 3700 + ( 3700 - 3400 ) = 4000

The primary trend continues upward and none of our market filters indicate elevated risk.

If we .... sink into a nation of mere hucksters, putting gain over national honor, and subordinating everything to mere ease of life, then we shall indeed reach a condition worse than that of the ancient civilizations in the years of their decay.

~ Theodore Roosevelt