A monthly chart of the S&P 500 index gives a clearer picture. Although the Nasdaq is advancing strongly, the S&P 500 is stuck below its long-term trendline. Note the similarity to March-May 2008 rally. Breakout above 1250 would be a bullish sign, similar to the May 2008 breakout above 1400, but retreat below the former resistance level (1250) would give a strong bear warning. Likewise, a 63-day Twiggs Momentum peak below the zero line would signal a strong primary down-trend.
* Target calculation: 1100 – ( 1250 – 1100 ) = 950
Very nice viiew for month – long period. I’m regulary used to daily, max weekly charts. This chart (monthly) gives me better view and improves my overview of things.