Dow, Nasdaq diverge

Dow Jones Industrial Average is testing resistance at 12300. Breakout would signal a primary advance to 13400 and an end to the bear market. Rising 63-day Twiggs Momentum is encouraging but will only be significant if retracement respects the zero line.

Dow Jones Industrial Average

* Target calculation: 12300 + ( 12300 – 11200 ) = 13400

The Nasdaq 100, however, displays a large bearish divergence on 13-week Twiggs Money Flow, warning of selling pressure. Reversal below 2040 would confirm a primary down-trend. Breakout above 2400 is less likely, but would suggest an advance to 2800*.

Nasdaq 100 Index

* Target calculation: 2400 + ( 2400 – 2000 ) = 2800

2 Replies to “Dow, Nasdaq diverge”

  1. You could also draw a pennant/triangle by adding a trend line on the lows of the Trigg Money Flow. This could show the chance of a break to the upside.
    Also note the divergence from Aug-September where the NASDAQ made lower lows, but the Trigg Money Flow did not.

    Some indications of upside potential even in NQ?

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