The NASDAQ 100 index broke support at 2300 on the weekly chart, warning of a correction to test primary support at 2000. A large bearish divergence on 13-week Twiggs Money Flow now warns of a primary down-trend; reversal below zero would strengthen the signal. Failure of support at 2000 would confirm.
* Target calculation: 2000 – ( 2400 – 2000 ) = 1600
Dow Jones Industrial Average broke out below its recent pennant, warning of another test of primary support at 10600. Breach of support at 11600 would confirm the signal. Reversal of 63-day Twiggs Momentum below its recent lows (-4%) would complete an “iceberg” — with the indicator just peaking above the zero line — indicating a primary down-trend.
* Target calculation: 10600 – ( 12200 – 10600 ) = 9000
What, if anything, is required to confirm a breakout from a pennant?
For the Dow, “Breach of support at 11600 would confirm the signal”
regarding the DOW, you say the following:
“Reversal of 63-day Twiggs Momentum below its recent lows (-4%) would complete an “iceberg” — with the indicator just peaking above the zero line — indicating a primary down-trend.”
Can you describe an “iceberg” formation for me and what volume indicators one would expect. The search engine on Incredible Charts does not seem to be able to locate it so I can learn what it is.
Thanks,
Carl
Roughly only 10% of an iceberg is visible at sea, with the largest mass hidden below the water level. Similarly, an “iceberg” pattern on a chart describes a situation where +/- 90% of Twiggs Momentum (or a similar indicator) is below zero with only a small peak protruding above. They warn of a down-trend.