The S&P 500 is headed for a test of the 2000/2007 highs at 1550/1565. Expect resistance but troughs above the zero line on 13-week Twiggs Money Flow indicate long-term buying pressure. Breakout is likely and would signal an advance to 1750*. Breach of the rising trendline would test of support at the long-term trendline — around 1400.
* Target calculation: 1550 + ( 1550 – 1350 ) = 1750
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.