The S&P 500 closed Friday above resistance at 1340, confirming the bullish divergence on 21-day Twiggs Money Flow (hat tip johnb). Expect retracement to test the new support level, followed by a rally to the March/April high of 1420. Wait for breakout on the Nasdaq 100 to confirm the Dow and S&P 500 signals.
Dow Jones Industrial Average broke medium-term resistance at 12600/12700, indicating a rally to 13300. Expect retracement to first test the new support level. A bounce off the zero line by 13-week Twiggs Money Flow indicates medium-term buying pressure — and a likely rally — but the long-term bearish divergence remains and suggests strong resistance at 13300.
Nasdaq 100 has penetrated its descending trendline, signaling a bottom, but has yet to break resistance at 2580 — which would signal an advance to 2800 and confirm the Dow/S&P signals. Bullish divergence on 21-day Twiggs Money Flow indicates medium-term buying pressure.
My NASDAQ 100 says 2880.
http://www.google.com/finance?cid=13756934
What NASDAQ 100 are you looking at?
Nasdaq 100 symbol is $IUXX. Are you perhaps looking at the Nasdaq Composite Index ($NASX)?
RE S&P500 you said; ‘Expect retracement to test the new support level.’
What is the new support level?
Cheers
S&P500 retracement failed to respect support at 1335/1340, negating the earlier signal.