Dow Jones Industrial Average is testing medium-term support at the December high of 16500. Respect of this line would indicate a healthy up-trend, while breach would warn of a correction to the primary trendline. Failure of primary support at 15400/15600 remains unlikely, but would warn of reversal to a down-trend. Completion of a 13-week Twiggs Money Flow trough above zero would suggest long-term buying pressure and another primary advance.
* Target calculation: 16500 + ( 16500 – 15500 ) = 17500
The CBOE Volatility Index (VIX) remains below 20, suggesting continuation of the bull market.
Bellwether transport stock Fedex is also testing support at its December high ($144/$145). Respect would confirm a healthy up-trend — for both the stock and the economy. Likewise, a 13-week Twiggs Money Flow trough above zero would suggest long-term buying pressure and another primary advance. Breach of support is unlikely, but would warn of a test of primary support at $129/$130.
* Target calculation: 145 + ( 145 – 130 ) = 160