The S&P 500 closed above medium-term resistance at 1360. I am normally wary of quarter-end prices moves as fund managers have a vested interest in boosting their performance bonuses. But the breakout appears to have a legitimate basis, with Germany’s key concessions at the Euro summit, and should test the 2012 high of 1420. 63-Day Twiggs Momentum holding above zero suggests the primary trend is intact. Reversal below the new support level (1360), however, would indicate a false signal. Falling 10-year treasury yields warn of another flight to safety (unless the Fed is driving down yields through its “Twist” operations) and we need to exercise caution.
* Target calculation: 1360 + ( 1360 – 1300 ) = 1420
Wait for the Nasdaq 100 to break resistance at 2630 and confirm the S&P signal. Rising 21-day Twiggs Money Flow indicates medium-term buying pressure.
* Target calculation: 2650 + ( 2650 – 2500 ) = 2800
Bellwether transport stock Fedex (weekly chart) completed a double top reversal in April but since then has oscillated around the former neckline at $88. 63-Day Twiggs Momentum also recovered above zero. Follow-through above $92 would suggest that the correction is over and broader economic activity is recovering. Reversal below $85 is unlikely but would warn of a primary down-trend.
Gone through TWO sets of of lower highs raising its head again and is facing resistance 40%chances it might break through. it will find support@ 85.00