The S&P 500 hesitated at its upper trend channel. Follow-through below 1460 would indicate a test of the lower channel and support at 1400. Bearish divergence on 21-day Twiggs Money Flow continues to warn of a correction.
* Target calculation: 1420 + ( 1420 – 1280 ) = 1560
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.
Thanks the Dow looks very simular
Basis an RSI (14/C or 21/C) there is no divergence so there must be considerable differences between it and your Money Flow Index. Similarly with the Metastock Money Flow. Any comment on the differences
RSI compares closing price to the previous close while Twiggs Money Flow compares closing price to the daily range before adjusting for volume.
Not sure of MMF.
A temporary stall is not unexpected. The target of 1560 seems realistic in light of the current optimism re: the economy.