Resistance on the S&P 500 has shifted from 1450 to 1475, Friday’s weak close and declining 21-day Twiggs Money Flow indicate selling pressure. Breakout above 1475 would signal a primary advance, while reversal below 1430 would warn of a correction.
* Target calculation: 1420 + ( 1420 – 1280 ) = 1560
The Nasdaq 100 (weekly chart) is similarly testing support at 2800/2750. Bearish divergence on 63-day Twiggs Momentum indicates a weakening up-trend; reversal below zero would warn of a primary down-trend. Respect of support is would indicate another advance, while failure would strengthen the bear signal.
* Target calculation: 2800 + ( 2800 – 2450 ) = 3150
I’m new to charting and often struggle to connect market sentiment and chart activity. Does the chart drive the market or does the market drive the chart?