The S&P 500 Index continues to test resistance at 1420. Bearish divergence on 21-day Twiggs Money Flow warns of medium-term selling pressure. Expect a test of the lower trend channel; reversal below 1380 would indicate a correction. Breakout above 1420, however, would signal an advance to the 2007 high at 1560*.
* Target calculation: 1420 + ( 1420 – 1280 ) = 1560
The Nasdaq 100 is similarly testing resistance at 2800 on the weekly chart. Breakout would offer a target of 3150*. The 63-day Twiggs Momentum trough above zero indicates continuation of the primary up-trend, but reversal below zero would warn of a primary down-trend.
* Target calculation: 2800 + ( 2800 – 2450 ) = 3150
Fedex is testing support at $88, neckline of the March/April double top. Failure of support would suggest continuation of the primary down-trend; confirmed if support at $84 is broken.
