After early skittishness over some dud Institute for Supply Management (ISM) data, the S&P 500 recovered lost ground by the close. Expect an advance to 1950*. Rising 21-day Twiggs Money Flow troughs above zero indicate strong medium-term buying pressure. Reversal below 1900 is unlikely, but would warn of a correction.
* Target calculation: 1850 + ( 1850 – 1750 ) = 1950
CBOE Volatility Index (VIX) below 12 indicates low risk typical of a bull market.
The Nasdaq 100 is testing resistance at 3740/3750. Breakout would signal an advance to 4000*. Rising 21-day Twiggs Money Flow troughs above zero again indicate strong medium-term buying pressure. Reversal below 3700, however, would warn of another correction.
* Target calculation: 3700 + ( 3700 – 3400 ) = 4000