The S&P 500 broke support at 1420, following a trend channel breakout, both signaling a correction. Reversal of 21-day Twiggs Money Flow below zero warns of renewed (medium-term) selling pressure — a peak below zero would strengthen the signal. Breach of 1400 would further strengthen the signal.
The Dow Jones Industrial Average similarly broke support at 13300 on the weekly chart. Bearish divergence on 63-day Twiggs Momentum indicates a weakening up-trend; reversal below zero would warn of a primary down-trend. Breach of support at 13000 — and the primary trendline — would warn that a top is forming. Recovery above 13650 is unlikely at present but would indicate an advance.
* Target calculation: 13000 + ( 13000 – 12000 ) = 14000
Is it possible to access the Twiggs Momentum Oscillator? If yes, that would be wonderful.
I see a rising wedge on this chart !
Regards Johan Wagenaar
Yes. On the Dow Weekly Chart. Too big to be reliable though, in my opinion.
Colin There have been quite a few divergences of late. It is 8.30 pm Friday 26 Oct Qld time. It may be the equity markets are topping out. There seems to be more sell volume on up days. I have seen this sucker punch before. Then again I could be wrong. But the world is definitely not in a bull market. More like Burt Lancaster selling snake oil!