Two doji candles on the S&P 500 daily chart indicate indecision. Fiscal cliff negotiations are unlikely to be resolved quickly and another test of primary support at 1350 seems inevitable. Failure of short-term support at 1400 is likely and would signal a test of primary support. While breakout above 1425 is unlikely it would test resistance at 1475. Reversal of 21-day Twiggs Money Flow below zero would indicate selling pressure, but a higher trough (above/below zero) would suggest continuation of the advance to 1475.

Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
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.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.