Dow Selling Pressure Continues

By Colin Twiggs
September 30, 2016 9:00 p.m. EDT (11:00 a.m. AEST)

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Global

Dow Jones Global Index is testing resistance at 325. Follow-through above 325 would complete an inverted scallop with a target of 355*. Momentum troughs above zero indicate trend strength.

DJ Global Index

* Target calculation: 325 + ( 325 - 295 ) = 355

North America

The S&P 500 is rising gradually in an upward flag formation. Reversal below 2150 would warn of a test of 2100. Declining Twiggs Money Flow warns of medium-term selling pressure. Breakout above 2200 is unlikely at present but would offer a target of 2400*.

S&P 500 Index

* Target calculation: 2100 + ( 2100 - 1800 ) = 2400

The Dow Jones Industrial Average is testing support at 18000. Bearish divergence on Twiggs Money Flow flags long-term selling pressure. Breach of 18000 would warn of a test of primary support at 17000.

Dow Jones Industrial Average

* Target medium-term: 18500 + ( 18500 - 18000 ) = 19000

Fedex signaled a primary up-trend with breakout above 170. A bullish sign for the economy. Follow-through above 180 would confirm.

St Louis Fed Financial Stress Index

Transport activity is rising. On the other hand, employment data indicates weakness, with average weekly hours worked declining.

Australia

The latest ASX 200 rally is hesitant and bearish divergence on Twiggs Money Flow warns of selling pressure. Breakout above 5600 is unlikely. Reversal below 5200 would warn of a primary down-trend.

ASX 200

* Target calculation: 5400 + ( 5400 - 5100 ) = 5700

The ASX 300 Banks Index respected resistance at 8000. A Twiggs Money Flow peak below zero warns of strong selling pressure. Breach of support at 7500 would warn of another decline. Breakout above 8000 is unlikely.

ASX 300 Banks Index

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