Category: Stock Markets

Analysis of major stock markets around the world.

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S&P 500 and DJ Europe

The S&P 500 index is headed for medium-term support at 1160. 21-Day Twiggs Money Flow warns of (medium-term) selling pressure. If support at 1160 fails, primary support at 1075/1100 is unlikely to hold — offering a target of 900*. Reversal below the rising trendline on 63-day Twiggs Momentum would indicate continuation of the primary down-trend.

S&P 500 Index

* Target calculation: 1100 – ( 1300 – 1100 ) = 900

Dow Jones Europe index is also headed for primary support, at 205. Failure is likely and would offer a target of 160*. Reversal of 13-week Twiggs Money Flow below zero would warn of rising selling pressure.

Dow Jones Europe Index

* Target calculation: 210 – ( 260 – 210 ) = 160

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Dow warns of correction

Dow Jones Industrial Average reversed below short-term support at 12000. Bearish divergence on 21-day Twiggs Money Flow warns of medium-term selling pressure — and a correction to test primary support at 10600. Reversal (of TMF) below zero and follow-through (of DJIA) below 11900 would strengthen the signal.

Dow Jones Industrial Average

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FTSE 100 uncertainty

The FTSE 100 encountered resistance at 5600, respecting the descending trendline. David Cameron’s veto of the EU treaty proposal is likely to inject further uncertainty — and another test of medium-term support at 5050. 13-Week Twiggs Money Flow is reasonably strong but, again, we need to allow a few weeks for markets to absorb the latest news.

FTSE 100 Index

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Euro Stoxx 50

Dow Jones Euro Stoxx 50 index hesitated in its rally to resistance at 2500 on the weekly chart, but the trend remains upward. Breakout above 2500 would signal a primary advance to 2900* — and end of the bear market. 63-Day Twiggs Momentum is also rising, but recovery above zero appears some way off.

DJ Euro Stoxx 50 Index

* Target calculation: 2500 + ( 2500 – 2100 ) = 2900

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Canada TSX 60

Respect of the descending trendline on Canada’s TSX 60 weekly chart indicates another test of primary support at 645. Failure would signal a primary decline to 575*. Breach of the zero line by 63-day Twiggs Money Flow would warn of rising selling pressure. Breakout above resistance at 715 is unlikely but would flag that the primary down-trend has ended.

TSX 60 Index

* Target calculation: 645 – ( 715 – 645 ) = 575

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Dow, Nasdaq diverge

Dow Jones Industrial Average is testing resistance at 12300. Breakout would signal a primary advance to 13400 and an end to the bear market. Rising 63-day Twiggs Momentum is encouraging but will only be significant if retracement respects the zero line.

Dow Jones Industrial Average

* Target calculation: 12300 + ( 12300 – 11200 ) = 13400

The Nasdaq 100, however, displays a large bearish divergence on 13-week Twiggs Money Flow, warning of selling pressure. Reversal below 2040 would confirm a primary down-trend. Breakout above 2400 is less likely, but would suggest an advance to 2800*.

Nasdaq 100 Index

* Target calculation: 2400 + ( 2400 – 2000 ) = 2800

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S&P 500 hovers near tipping point

The S&P 500 index recovered above medium-term support at 1220/1250, with a short surge in buying pressure, but the situation remains precarious. Breakout above 1300 would indicate that the threat of another bear market has passed, but reversal below 1160 remains as likely — and would warn of another test of primary support at 1100/1080.

S&P 500 Index

The situation is similar to the attempted recovery above 1400 [now here] in 2008. Reversal below medium-term support [1400] in that case tipped us into a bear market.

S&P 500 Index

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Pullout from U.S. Stock Funds Crosses $130B

Investors have now pulled more than $130 billion out of mutual funds that invest long term in United States stocks, since May 1.

…..In the six months ending October 31, $114.8 billion already had been pulled out of U.S. stock funds. The peak was in August, when Standard & Poor’s downgraded the rating of U.S. government debt. That month $26.3 billion was pulled out. But the pullout has stayed above $14 billion every month since.

via Pullout from U.S. Stock Funds Crosses $130B.

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Footsie and Euro Stoxx 50 shows signs of resurgence

The FTSE 100 index is headed for resistance at 5700. Breakout would signal an advance to the 2011 highs at 6100. Rising 13-week Twiggs Money Flow indicates buying pressure.

FTSE 100 Index

* Target calculation: 5700 + ( 5700 – 5200 ) = 6200

The Dow Jones Euro Stoxx 50 also shows signs of recovery, heading for a test of the descending trendline and resistance at 2500. Breakout would signal a primary advance to 2900* and the end of the bear market. Momentum is rising but remains a long way below the zero line. Respect of 2500 would be a bear signal not only for the euro-zone, but for the global economy.

Euro Stoxx 50 Index

* Target calculation: 2500 + ( 2500 – 2100 ) = 2900

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Canada TSX 60

The TSX 60 index is headed for a test of the descending trendline and resistance at 720 on the weekly chart. Upward breakout would signal a primary advance to 790* and the end of the bear market. Respect of zero by 13-week Twiggs Money Flow would strengthen the signal, indicating strong buying pressure.

TSX 60 Index

* Target calculation: 720 + ( 720 – 650 ) = 790

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