The S&P 500 broke support at 1675 and is testing 1650. Bearish divergence on 21-day Twiggs Money Flow warns of selling pressure. Breach of 1650 would test the rising trendline around 1625. Respect (of the trendline) would indicate a healthy up-trend, while failure would test primary support at 1560.
* Target calculation: 1680 + ( 1680 – 1560 ) = 1800
There is a lower trendline, however, on the monthly chart. Breach of support at 1560 would indicate a test of the (super) trendline.
The VIX below 15 continues to indicate low market risk, favoring a primary up-trend. We need to watch this closely, however, as a spike above 0.20 may warn that something is amiss.
The TSX Composite Index rallied off support at 12400, indicating a test of resistance at 12900/13000. Rising 13-week Twiggs Money Flow above zero indicates medium-term buying pressure. Respect of resistance would suggest another down-swing to 12000/11750, but breakout above 12900/13000 is as likely and would offer a long-term target of 14000*.
* Target calculation: 13000 + ( 13000 – 12000 ) = 14000