S&P 500 Triangle

By Colin Twiggs
May 4th, 2017 9:00 p.m. EDT (11:00 a.m. AEST)

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The S&P 500 has formed a symmetrical triangle over the last 4 months. Long tails on the last two weekly candles indicate buying pressure, as does Twiggs Money Flow recovering above its descending trendline. Breakout of the index above its descending trendline at 2700 would signal a fresh advance with a medium-term target of 3000.

S&P 500

Volatility remains elevated, in the amber zone between 1% and 2%. A large trough above 1.0% would warn that risk is elevated and more downside is likely to follow.

S&P 500 and Twiggs Volatility

Bellwether transport stock Fedex (FDX) is in a similar position, having found support at 230. Breakout above 255 would signal a fresh advance — a bullish sign for the economy.

Fedex

It never was my thinking that made the big money for me. It always was my sitting. Got that? My sitting tight!

~ Jesse Livermore

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Colin Twiggs is director of The Patient Investor Pty Ltd, an Authorised Representative (no. 1256439) of MoneySherpa Pty Limited which holds Australian Financial Services Licence No. 451289.

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