The S&P 500 is headed for a test of 1420 on the weekly chart. Breakout would signal an advance to 1570* — the 2007 high. The 13-week Twiggs Money Flow trough above zero indicates strong long-term buying pressure.
* Target calculation: 1420 + ( 1420 – 1270 ) = 1570
The Nasdaq 100 is headed for 2800*. A 63-day Twiggs Momentum trough above zero would confirm the primary up-trend. Breakout would offer a target of 3150*.
* Target calculation: 2800 + ( 2800 – 2450 ) = 3150
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
Not happening
Whatever is the consensus of what will happen, will be the exact opposite of what will actually happen. Nothing pushes the market higher like a good old fashion short squeeze.
Is there any evidence of this?