S&P 500 healthy bounce
By Colin Twiggs
September 16th, 2014 8:00 pm EDT (10:00 am AEST)
Advice herein is provided for the general information of readers and does not have regard to any particular person's investment objectives, financial situation or needs. Accordingly, no reader should act on the basis of any information contained herein without first having consulted a suitably qualified financial advisor.
The S&P 500 bounced off support at 1980/1985 and is once again testing resistance at 2000. Follow-through above 2010 would confirm a primary advance, targeting 2100*. Failure of short-term support at 1980 remains unlikely, but would warn of a correction to 1950.
* Target calculation: 2000 + ( 2000 - 1900 ) = 2100
CBOE Volatility Index (VIX) retreated below 13, indicating low risk typical of a bull market.
Dow Jones Industrial Average breakout above 17150 would strengthen the bull signal, offering a target of 17500*. Rising 21-day Twiggs Money Flow suggests buying pressure. Reversal below support at 16950 is unlikely, but would warn of a correction.
* Target calculation: 16500 + ( 16500 - 15500 ) = 17500
Prudent, cautious self-control, is wisdom's root.
~ Robert Burns (1759 - 1796)
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