Dow Jones Industrial Average continues to test medium-term support at the December high of 16500. Breach of support would warn of a correction to the primary trendline — at 16000 — while respect of support would indicate another attempt at 17000. Failure of primary support at 15400/15600 remains unlikely, but would warn of reversal to a down-trend. Completion of another 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 S&P 500 found support at 1900. Recovery above 1950 would suggest another advance. Breach of primary support at 1750 remains unlikely. Completion of a higher trough on 13-week Twiggs Money Flow, with recovery above 32%, would indicate that buyers are back in control.
* Target calculation: 1500 + ( 1500 – 750 ) = 2250
The CBOE Volatility Index (VIX) retreated from its recent high, suggesting continuation of the bull market.
