Canada’s TSX 60 index broke through primary support at 650, confirming the primary down-trend signaled by 63-day Twiggs Momentum. Expect a decline to 580*. Recovery above 650 is unlikely at present, but would warn of a bear trap.
* Target calculation: 650 – ( 720 – 650 ) = 580
The weekly trend of the S&P 500 made two strong corrections since 2009 and these two corrections did not respect the zero line of the MACD. I am afraid that this whole rally is a bearish rally!!.
I agree on the bearish call, without going in to the details.
There is a rally under way that may come as a surprise since Colin’s trading diary.
I note that price bounced off of 50% retracement of the rally since GFC. The oversold relief rally this week is destined to further selling imo.
Looks like we all agree on the long term direction.
ps
I see the risistance to this rally at about 661, which is half way between the 38% retracement and the 50% retracement. Using an alternate method of price control changing hands, the 661 price resistance is also confirmed imo. If 661 resistance fails then 679 will be the next resistance target.