US: S&P 500 and Nasdaq rally

The S&P 500 rallied off support at 1290/1300, the 50% Fibonacci retracement level. Respect of resistance at 1350/1360 would indicate a strong correction. Likewise a 21-day Twiggs Money Flow peak below zero would be a strong bear signal. The primary trend remains upward, with support a long way off at 1150.

S&P 500 Index

On the weekly chart, the Nasdaq 100 displays a solid bounce off support at 2500 and the rising trendline. Respect of resistance at 2650 would indicate a test of 2400. A 63-day Twiggs Momentum trough above zero would reinforce the primary up-trend, but momentum is falling fast and penetration of the zero line would warn of reversal to a down-trend.

Nasdaq 100 Index

One Reply to “US: S&P 500 and Nasdaq rally”

  1. I agree with your analasys. I believe that the market will rally to test overhead resistance possibly even break thru resistance slightly, enough to encourage longs back in en mass but be aware, Wall St is a monster, I believe a head fake above overhead resistance will see a very large correction to the down side. Follow the smart money, remember Wall St accumulates as prices are coming down and distributes into strength, smart money indicators such as yours are what traders need to follow the smart money

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