Dow Jones Industrial Average is testing resistance at 11700. Breakout would warn of a primary advance, but the market is prone to false signals because of excessive volatility and it would be prudent to wait for confirmation. Respect of 11700, or a false break above 11700, would re-visit support at 10600.
* Target calculation: 11000 – ( 12000 – 11000 ) = 10000
The S&P 500 is similarly testing resistance at 1230 on the weekly chart. Breakout would signal an advance to 1350, while respect would indicate another test of 1100. Breakout above the declining trendline on 13-week Twiggs Money Flow suggests nothing more than a secondary reaction (bear market rally). See the monthly chart.
* Target calculation: 1100 – ( 1250 – 1100 ) = 950
The Nasdaq 100 index, however, broke through 2350 and is headed for its July high. Bullish divergence on 13-week Twiggs Money Flow indicates reversal to an up-trend. Breakout above 2440 would confirm, offering a target of 2800*.
* Target calculation: 2400 + ( 2400 – 2000 ) = 2800
I’ve linked to my Trading Day post @macrobusiness on your SP500 chart Colin, if you don’t mind!
Yes sure.