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
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.