Bellwether transport stock Fedex completed a double top reversal, with a break of the neckline at $88, and is now consolidating between $85 and $90. Retreat of 63-day Twiggs Momentum below zero warns of a primary down-trend. Failure of support at $85 would confirm, suggesting that economic activity is slowing.
* Target calculation: 85 – ( 95 – 85 ) = 75
Colin:
Thanks for the very nice engulfing note on SPX.
In support of your analytical bias downward, the 13RSI failed its second attempt to break 50%, and price failed its second attempt to break the 144ema.
Your momentum indicator is great, and consistent, though I prefer a shorter time frame. Is it possible to overlay momentum on price ?
“Your momentum indicator is great, and consistent, though I prefer a shorter time frame. Is it possible to overlay momentum on price?”
I prefer 63 days for the primary cycle, 21 days for the secondary.
You can’t overlay Momentum on the price chart because it oscillates rather than rises or falls. Drawing trendlines or channels on the price chart is another measure of Momentum however.
Colin
You seem to be ignoring a divergence in the money flow vs the price. It’s an extremely positive divergence.
John B
I would like to see TMF recover above zero (the previous high) before I attach any weight to this.