Dow Jones Industrial Average is advancing strongly, with rising 13-week Twiggs Money Flow indicating medium-term buying pressure. Target for the advance is 16600*. Retracement to test the new support level remains likely, however, and respect would confirm the advance. Reversal below 15700 is unlikely, but would test the secondary rising trendline around 15500.
* Target calculation: 15700 + ( 15700 – 14800 ) = 16600
The S&P 500 is testing resistance at the target of 1800*. Rising 13-week Twiggs Money Flow indicates medium-term buying pressure. Reversal below 1750 would warn of a correction to the secondary trendline at 1700. Short corrections are indicative of strong buying pressure.
* Target calculation: 1725 + ( 1725 – 1650 ) = 1800
CBOE Volatility Index (VIX) continues below 15, indicating low market risk.
The Nasdaq 100 continues its accelerating up-trend. Rising Twiggs Money Flow, with higher troughs above the zero line, indicates strong buying pressure. Target for the advance is 3550*. Reversal below the latest trendline would warn of a correction. Short corrections and narrow consolidations reflect an accelerating trend, or blow-off. Steep gains, however, almost inevitably end with a sharp fall.
* Target calculation: 3400 + ( 3400 – 3250 ) = 3550