The S&P 500 is testing resistance at 1650, but declining 21-day Twiggs Money Flow warns of continued selling pressure. Breakout would signal an advance to the upper trend channel, around 1700. Reversal below 1600, however, remains likely and would indicate a correction to 1500.
China’s Shanghai Composite Index broke primary support at 2170 on Thursday. Follow-through below 2150 would signal a decline to the 2012 low of 1950*.
* Target calculation: 2150 – ( 2350 – 2150 ) = 1950
The ASX 200 is retracing to test its new resistance level at 4900. Respect would confirm the primary down-trend — as would a peak below zero on 21-day Twiggs Money Flow.
The ASX Small Ordinaries Index, reflecting retail investor interest in the market, continues its primary down-trend. Breach of the 2012 low at 2040 warns of a decline to 1700*.
* Target calculation: 2050 – ( 2400 – 2050 ) = 1700
Twiggs, any chance of your kind provision of technicals on a few of our largest market cap stocks like CBA , BHP , RIO , TLS and Woodside. The retail investors you refer to in small cap stocks index are also large components in these stocks, so quite significant. Thanks.
Unlike APRA, I am concerned about fundamentals of the big four banks. Under-capitalized and over-exposed to the housing market.
I was referring to “charting technicals’ , as immediately evident from the context of related issues. Your “APRA” referral / response, respectfully = ?? ; not to worry , appears the response of strain. Cheers
Apologies for the obtuse response. I do think that the big four banks need to lift their capital ratios — to about double their existing levels — but that does not answer your question. I do occasionally refer to charts of individual companies but cannot offer regular coverage without a significant increase in time spent.
Interestingly, you post here about the XJO is somewhat similar to your post on 22 May 2012 looking for a primary downtrend.
However the low came in on around early June 2012 not much below May 2012 lows after which the XJO slowly rose for many months.
The money flow, RSI, Stoch, MACD around May/June 2012 look somewhat similar to now, however the XJO was well below its 200ma back in May/June 2012 whereas it is now back above (after briefly breaking below) and the XJO currently remains above the trendline from May/June 2012. Will the XJO break back below the trendline or remain above?
Interesting days ahead!
Well, there you have it, back below the 200ma in a flash.
If S&P breaks 1598 then looking for 1520 to 1550, which would take XJO near 4500?
Support at 4400/4500 is the most obvious target level.