The S&P 500 found support at 1850, signaling an advance to 1950*. Repeated troughs high above zero on 13-week Twiggs Money Flow indicate strong long-term buying pressure
CBOE Volatility Index (VIX) below 15 continues to reflect low market risk typical of a bull market.
The Nasdaq 100 respected support at 3600, but bearish divergence on 13-week Twiggs Money Flow warns of medium-term selling pressure. Failure of support would warn of another correction. Follow-through above 3700, however, would offer a target of 3800*.
* Target calculation: 3600 + ( 3600 – 3400 ) = 3800
Bellwether Transport stock Fedex found support at $130 on the monthly chart. Breakout above $145 would offer a target of $170*. Rising 13-week Twiggs Money Flow indicates buying pressure. A bullish sign for the broader economy. Reversal below $130 is unlikely, but would warn of a decline to $120.
* Target calculation: 145 + ( 145 – 120 ) = 170
Twiggs divergence also on the S&P
There was (on 13-week TMF) in Jan/Feb, but descending trendline now broken.