The S&P 500 Index is currently consolidating between 1400 and 1420. Lackluster momentum suggests another correction; confirmed if Twiggs Momentum (63-day) reverses below zero. Breakout above 1420, however, would signal an advance to the 2007 high of 1560*.
* Target calculation: 1420 + ( 1420 – 1280 ) = 1560
The Dow Jones Industrial Average is similarly testing support at 13000 on the weekly chart. Downward breakout would penetrate the rising trendline, suggesting another correction. Weak volume signals a lack of interest from buyers rather than resistance from sellers. Upward breakout above 13300 is unlikely, but would indicate an advance to the 2007 high of 14200.
