Dow Jones Industrial Average is headed for another test of 17000/17100 after finding support at 16400/16500. Recovery of 13-week Twiggs Money Flow above its July high would indicate that buyers are back in control. Breakout above 17100 would offer a target of 17500*. Reversal below 16400 is unlikely, but would warn of a test of the primary trendline at 16000.
* Target calculation: 16500 + ( 16500 – 15500 ) = 17500
The S&P 500 followed through above Friday’s high of 1965, suggesting another attempt at 2000. Completion of a trough above zero on 21-day Twiggs Money Flow would confirm buying pressure. Breakout above 2000 would offer a target of 2250*, but expect markets to remain cautious because of current geopolitical tensions. Reversal below 1950 is unlikely, but would warn of another test of support at 1900.
* Target calculation: 1500 + ( 1500 – 750 ) = 2250
Low CBOE Volatility Index (VIX) readings are typical of a bull market.
I would like a deeper understanding of the twigg indicator, because it looks majorly divergent to the price action in the above charts. Yet claims are made that the buyers are in control.
There are examples here: http://www.incrediblecharts.com/indicators/twiggs_money_flow.php#twiggs_money_flow-trading_signals