The TSX Composite retreated from resistance at 12800. Reversal of 21-day Twiggs Money Flow below zero warns of selling pressure. Breakout below 12650 would confirm a correction. Expect support at 12500.
Rising troughs on long-term (13-week) Twiggs Money Flow, however, suggest that a base is forming. Breakout above 13000 would indicate a primary advance, offering a target of 15000*.
* Target calculation: 13000 + ( 13000 – 11000 ) = 15000
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.