US breakout

The S&P 500 index followed through to confirm the breakout above resistance at 1300, signaling the start of a primary up-trend. Rising 13-week Twiggs Money Flow indicates selling pressure. Target for the advance is 1440*.

S&P500 Index

* Target calculation: 1300 + ( 1300 – 1160 ) = 1440

Nasdaq 100 shows a stronger breakout above 2400, with similar buying pressure reflected on 13-week Twiggs Money Flow. Initial target for the primary advance is 2600*.

Nasdaq 100 Index

* Target calculation: 2400 + ( 2400 – 2200 ) = 2600

Bellwether transport stocks, Fedex and UPS, reinforce the S&P and Nasdaq signal with new highs signaling a primary up-trend.

Fedex and UPS
Always bear in mind that the primary up-trend rests on unstable foundations (private sector deleveraging offset by deep government sector deficits) and may not last much longer than the November elections.

One Reply to “US breakout”

  1. Please revise your commentary to show twiggs moneyflow back to 07-08 to be consistent with other markets you cover. A very biased opinion Colin for someone in your position. Not denying the short term move but why the inconsistencies?

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