Short bars on the S&P 500 retracement are a bullish sign, respect of short-term support at 1450 would suggest a strong advance.
The ASX 200 is strengthening in sympathy, despite poor performance of Chinese markets. Breakout above 4400 would strengthen the primary up-trend signal, from rising 63-day Twiggs Momentum. Follow-through above 4450 would confirm.
* Target calculation: 4450 + ( 4450 – 4000 ) = 4900
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.