Bearish divergence on 21-day Twiggs Money Flow warns of medium-term selling pressure on the S&P 500 index. Expect a correction to test support at 1350/1370 unless we see 21-day Twiggs Money Flow recovering above 30%.
* Target calculation: 1300 + (1300 – 1150) = 1450
The Nasdaq 100 index encountered resistance at 2800. Bearish divergence on 13-week Twiggs Money Flow over the last two weeks warns of a correction. Breach of the secondary, rising trendline would indicate a correction to the long-term trendline at 2500.
* Target calculation: 2400 + ( 2400 -2050 ) = 2750
Bellwether transport stock Fedex warns of a double-top reversal. Longer-term bearish divergence on 13-week Twiggs Money Flow warns of strong selling pressure. Breach of support at 88 would signal a primary down-trend — and declining activity in the broader economy.
* Target calculation: 88 – ( 98 – 88 ) = 78
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.
Really there is no good news in USA unless there is long term sustainable recovery of the world economy. I feel the long term trend is going to be down while individual stocks will see results based on there individual performance.
The market is allowed to have a pullback, a breather, as it climbs higher. This is an election year. The Market will continue higher. Fear is dead, greed is back.
You can create triangles on the Twiggs Money Flow indicator by adding a lower trendline joining the bottoms. This shows the chance of a break out to the upside.
We were in the exact same situation 2-3 weeks ago, when the indicator was showing some divergence. We continued higher. A trend is a trend is a trend.