The S&P 500 breakout above 1300 suggests a primary advance to 1450*. Rising 13-week Twiggs Money Flow indicates buying pressure.
* Target calculation: 1300 + ( 1300 – 1150 ) = 1450
The signal was confirmed by similar breakouts on Dow Industrials and the Nasdaq 100, the latter offering a target of 2750*.
* Target calculation: 2400 + ( 2400 – 2050 ) = 2750
Dow Transportation Index has also completed a higher trough, signaling a primary up-trend. 63-day Twiggs Momentum recovery above zero strengthens the signal.
* Target calculation: 5050 + ( 5050 – 4550 ) = 5550
Would you call this a typical FED “feed the market monkeys free money” rally. Looking back since 2009, it has all the hallmarks. Free money and no debt to worry about while the banker to banker pipeline is open. Pity the poor buggers who have to actually work for money eh!!
Today you have SPX Nasdaq and Dow Transports as Primary uptrends. Transport now 5300 tops previously were about 5500.
Stock Charts Arthur Hill has Elliot Waves as either wave B or II with SPX max 1345 just below old May June tops 1353. RSI 14 is now 70 high and yet to break down the current medium uptrend line. If Hill is correct we go down to SPX 1099 lows again. Yet you have a Primary Uptrend. Is your uptrend about to fail???
“Is your uptrend about to fail???”
Fundamentals are weak (with Euro-zone and US public debt problems) but there is no sign of failure at this stage. Key areas to watch will be S&P resistance at 1370 and the rising trendline.