The S&P 500 has broken out above its symmetrical triangle and we are now witnessing retracement to test the new support level at 2700. Volatility is falling and a dip below 1.0% would suggest that the market has returned to business as usual.
Twiggs Money Flow remains a respectable distance above the zero line and is flattening out. Breach of primary support at 2550 seems unlikely.
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.