The ASX 200 broke resistance at 5650, but is now retracing to test the new support level. Reversal below 5620 would warn of another test of 5450, but respect of support is more likely and follow-through above 5680 would confirm an advance, offering a target of 5850*. Completion of another 21-day Twiggs Money Flow trough above zero would strengthen the signal.
* Target calculation: 5650 + ( 5650 – 5450 ) = 5850
Low readings for the ASX 200 VIX are typical of a bull market.
