The S&P 500 rallied off support at 1640/1650, but the correction is still underway. Respect of resistance at 1675 would confirm. Bearish divergence on 21-day Twiggs Money Flow warns of long-term selling pressure and reversal below zero would indicate continuation. Only a breach of primary support at 1560, however, would signal reversal to a down-trend.
* Target calculation: 1680 + ( 1680 – 1560 ) = 1800
VIX reversal below 15 indicates low market risk, favoring a primary up-trend.
The tech-laden Nasdaq 100 Index holding above its preceding peak at 3050 reflects a healthy up-trend.
The TSX Composite Index respected its rising trendline, suggesting a healthy up-trend. Rising troughs above zero on 21-day Twiggs Money Flow reflect strong buying pressure. Breakout above 12800 would offer a target of 13200*, but expect some resistance at 12900/13000.
* Target calculation: 12800 + ( 12800 – 12400 ) = 13200