US & Canada: Rising buying pressure

The S&P 500 short retracement at 1750 is a bullish sign, confirming the advance to 1800*. Rising 21-Day Twiggs Money Flow indicates buying pressure. Reversal below 1730 is most unlikely at present, but would warn of a test of primary support at 1650.

S&P 500

* Target calculation: 1730 + ( 1730 – 1650 ) = 1810

VIX below 15 flags low market risk.

VIX Index

Dow Jones Industrial Average is headed for a test of resistance at 15700; breakout would offer a target of 16600*. Recovery above the descending trendline on 13-week Twiggs Money Flow would negate the earlier bearish divergence. Breach of 14800 is unlikely, but would warn of a reversal.

Dow Jones Industrial Average

* Target calculation: 15700 + ( 15700 – 14800 ) = 16600

The Nasdaq 100, with 13-week Twiggs Money Flow troughs well above zero, indicates strong buying pressure.

Nasdaq 100

Canada’s TSX 60 is advancing toward its target of 800*, the trough above zero on 13-week Twiggs Money Flow indicating strong buying pressure. Reversal below 740 is now most unlikely.

TSX 60

* Target calculation: 740 + ( 740 – 680 ) = 800

2 Replies to “US & Canada: Rising buying pressure”

  1. Mr Twiggs…I look forward to your emails…in my view you are a hugely “technical indicator” person, and that fascinates me…your elegance to the technical indicators reinforces my thinking that the “market will do what the market wants” and those that want to predict market movements (fundamentalists) do so at their own risk…..and the likes of you (and me) only use what facilitators (indicators) are available to us

    I have made money using your indicators “reversals’ and “breakout” numbers etc

    Your insights have made me “aware” of possible price action…and that info is huge

    Thank you

    1. Thank you for the feedback. I started with a completely fundamental approach in the 80s but soon came to realize that fundamentals are simply overwhelmed when there is a tectonic shift in the markets. Market forces will depress even the best of stocks. And timing your entry and exit in the markets is critically important to overall investment performance.

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