Dow Jones Industrial Average retraced to test support at 17000. Respect is likely and would indicate a fresh advance. Follow-through above 17150 would confirm a target of 17500*. Recovery of 21-day Twiggs Money Flow above its July peak would strengthen the signal. Reversal below 16950 is unlikely, but would warn of another correction.
* Target calculation: 16500 + ( 16500 – 15500 ) = 17500
The S&P 500 is also testing support — at 2000. Respect would offer a target of 2100*. Follow-through above 2005 would confirm. A small trough above zero on 21-day Twiggs Money Flow is encouraging, but reversal below 20% would warn of selling pressure. Failure of short-term support at 1985/1990 is unlikely, but would warn of another correction.
* Target calculation: 2000 + ( 2000 – 1900 ) = 2100
Low CBOE Volatility Index (VIX) readings are typical of a bull market.
Bellwether transport stock Fedex respected support at $144/$145, indicating another advance. Follow-through above $154/$155 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 correction to primary support at $129/$130.
* Target calculation: 145 + ( 145 – 130 ) = 160