money flow Archives - Page 2 of 2 - the patient investor

August 22, 2011April 18, 2024

India Singapore short-term buying

The DJ Total Stock Market (formerly DJ Wilshire) Index for India ($DWIN) gapped down on Monday’s open but closed with a long tail. Short-term buying is unlikely to withstand concerted selling pressure, signaled by 13-week Twiggs Money Flow below zero.

Dow Jones Industrial Average

* Target calculation: 1820 – ( 1980 – 1820 ) = 1660

DJ Singapore also closed with a long tail, indicating short-term buying support — confirmed by higher volume. Again this is unlikely to withstand long-term selling pressure for more than a few days.

Dow Jones Industrial Average

* Target calculation: 220 – ( 240 – 220 ) = 200

August 22, 2011

Bovespa and JSE weaken

The bear rally on the Brazilian Bovespa Index has run out of steam and we can expect another test of support at 48000. 13-Week Twiggs Money Flow below zero signals continued selling pressure. Failure would offer a target of 38000*.

Brazil Bovespa Index

* Target calculation: 48000 – ( 58000 – 48000 ) = 38000

The JSE bear rally respected resistance at 30000. Money Flow is stronger, but reversal below 28000 would offer a target of 26000*.

JSE Overall Index

* Target calculation: 28000 – ( 30000 – 28000 ) = 26000

August 21, 2011

FTSE 100 tests support

The FTSE 100 Index is testing support at 5000. Breakout is likely and would offer a target of 4400*.

FTSE 100 Index

* Target calculation: 5000 – ( 5600 – 5000 ) = 4400

August 21, 2011

Nasdaq breaks support

The Nasdaq 100 broke support at 2050, warning of a down-swing to 1900*. Follow-through below last week’s low of 2040 would confirm. The latest peak on 21-day Twiggs Money Flow, barely breaking the zero line, indicates strong medium-term selling pressure.

Nasdaq 100 Index

* Target calculation: 2050 – ( 2200 – 2050 ) = 1900

The Dow is headed for a similar test: follow-through below 10600 would confirm a down-swing to 9600*. Higher volumes indicate the presence of buyers and failure of support would prove seller’s dominance.

Dow Jones Industrial Average

* Target calculation: 10800 – ( 12000 – 10800 ) = 9600

The S&P 500 is testing support at 1100 on the weekly chart. Failure would signal a test of 1000. 13-Week Twiggs Money Flow below zero warns of further selling pressure.

S&P 500 Index

* Target calculation: 1125 – ( 1250 – 1125 ) = 1000