Bearish divergence on the S&P 500 Index (21-day Twiggs Money Flow) warns of increasing resistance as the index approaches 1420. Expect retracement to 1360/1380 followed by another attempt at 1420. Breakout would signal another primary advance. Reversal below the trend channel is unlikely but would warn of a correction to test primary support at 1280.
* Target calculation: 1420 + ( 1420 – 1280 ) = 1560
The Nasdaq 100 is headed for 2800 on the weekly chart. A 63-day Twiggs Momentum trough above zero indicates a healthy primary up-trend.
* Target calculation: 2800 + ( 2800 – 2450 ) = 3150
Bellwether transport stock Fedex, however, is edging lower. Reversal of 63-day Twiggs Momentum below zero warns of a primary down-trend. Failure of primary support at $84 would confirm the primary down trend signaled by the March-April double-top. That would warn of an economic down-turn.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
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.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.
The trust was gone long ago, since we know the bankers are the dumpers of stock and leave
the public pensions at the higher levels, that’s why pensions collapse