Jeffrey Hirsch of the Stock Trader’s Almanac predicted that we would see an adjustment in the second half of the month. It looks like it may have started a few days early.
Failure of short-term support at 1350 on the S&P 500 index indicates retracement to test medium-term support at 1300. Declining 21-day Twiggs Money Flow indicates medium-term selling pressure but this is not mirrored on the long-term (13-week) indicator. Respect of support at 1300 would confirm the primary up-trend — presenting a buying opportunity. Target for the advance is 1450*.
* Target calculation: 1300 + ( 1300 – 1150 ) = 1450