S&P 500 displays little direction while bearish divergence on 13-week Twiggs Money Flow continues to signal selling pressure. Reversal below 1850 would warn of a correction to test primary support at 1750. Breakout above 1900, however would signal an advance to 1950.
* Target calculation: 1850 + ( 1850 – 1750 ) = 1950
The primary trend remains upward and CBOE Volatility Index (VIX) below 14 continues to indicate low risk typical of a bull market.
The Nasdaq 100 is struggling to break 3600 and reversal below 3400 would warn of a down-swing to the primary trendline. 13-Week Twiggs Money Flow below zero warns of selling pressure, but breakthrough above 3600 would suggest another advance.
* Target calculation: 3700 + ( 3700 – 3400 ) = 4000
The Russell 2000 is testing primary support at 11.00. Follow-through below 10.80 would confirm. Small caps outstripped large caps over the last 18 months, but now appear to be faltering. A 13-week Twiggs Momentum cross below zero would also warn of small cap reversal to a down-trend. A small cap down-trend would not necessarily mean large caps will follow: large caps significantly outperformed small caps for more than 3 years leading up to the 2000 Dotcom crash.
Canada’s TSX 60 is retracing, but unlikely to break support at 820 and the rising trendline. Rising 13-week Twiggs Money Flow, with troughs above zero, indicates long-term buying pressure. Respect of support would suggest an advance to the 2008 high of 900.
isn’t Canada’s chart showing a bearish divergence even though the momentum indicator is above 0. similar occurrences other charts
Divergence requires a completed (or near completed) peak/trough. The TSX is some way from that.
YOUR STUDIES ARE VERY GOOD FOR ME, CAN YOU PLEASE REVIEW THE WTI CRUDE CHARTS ?
THANK YOU
GUS MCCLAY