The S&P 500 is retracing to test its new support level at 2950. Bearish divergence on Twiggs Money Flow warns of (secondary) selling pressure. Breach of support would warn of a correction to test primary support at 2750.
Sector indexes are approaching a watershed moment, with Autos rallying to test their descending trendline.
Retail is also headed for a test of its rising trendline after making a new high.
Even Semiconductors have recovered to test their 2018 high at 1450.
I still believe it’s a good time to be cautious.
“Be fearful when others are greedy and greedy only when others are fearful.”
~ Warren Buffett
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
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.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.
