Quarterly charts for the last two decades give a good idea of where stocks will be headed in 2013.
The S&P 500 is headed for a test of its 2000/2007 high at 1550. Declining 63-day Twiggs Momentum indicates that resistance is unlikely to be broken. While this does not mean another fall to 750, it does suggest a strong correction.
Apple Inc. [AAPL] is no longer leading the advance but testing primary support at 500. Failure of support would confirm the primary down-trend indicated by a 63-day Twiggs Momentum peak below zero.
Germany’s DAX is also headed for a test of its 2000/2007 high, at 8200, but rising momentum indicates that breakout above resistance is likely.
The FTSE 100 is also advancing but is some way off its earlier high of 7000 and breakout appears unlikely.
India’s Sensex is more bullish and likely to break resistance at 21000.
The Shanghai Composite is headed in the opposite direction and likely to re-test long-term support at 1800/1750. Rising 63-day Twiggs Momentum (below zero) suggests that a bottom will form at this level.
The ASX 200 is headed for a test of resistance at 5000, supported by rising 63-day Twiggs Momentum. Breakout would signal an advance to 6000, but weakness in China and the US may delay this for some time.
Thank you for a great service thru 2012,Merry Christmas and may 2013 be a great new year for all of us.
Thanking you
Graeme Hosking
Awesome analysis throughtout the year, Merry Xmas Colin.
Thanks Colin for all your thoughtful insights ..Wishing you Merry Christmas and a ”Peaceful” New Year.
Lee… Canada
As above. Thank you for thoughtful and above all objective analysis (therefore trustworthy). Wishing you the best of holiday seasons and a properous/fulfulling New Year.
I appreciate your analysis but wish it included the TSX more often.
All the best for 2013
Thank you very much Colin – and merry Christmas. I greatly appreciate your insights and enjoy learning from your great site. There are so many ideologes, rampers, so called opinion leaders and biased financial reporters etc that are misleading and dangerous, Whereas you provide a valuable pragmatic context. Well done and please, more of the same again in 2013. I also appreciate your quotes – I’ve often pondered on the profundity of your current quote by Ralph Waldo Emerson.