The S&P 500 hammer candlestick on the weekly chart indicates support at 1750 and the secondary trendline. Follow-through above 1800 would strengthen the signal, suggesting an advance to 2000*. Breakout above 1850 would confirm. Recovery of 13-week Twiggs Money Flow above 40% (the most recent high) would indicate that the correction is over. Breach of 1750 seems unlikely, but would warn of a test of the primary trendline, around 1700.
* Target calculation: 1850 + ( 1850 – 1700 ) = 2000
CBOE Volatility Index (VIX) retreated below 20, suggesting low risk typical of a bull market.
