Canada’s TSX 60 found support at 750. Recovery above 780 would signal an advance to 810*. Another 13-week Twiggs Money Flow trough above zero would confirm strong buying pressure. Reversal below 740 remains unlikely, but would warn of a test of primary support at 675/680.
* Target calculation: 780 + ( 780 – 750 ) = 810
Low TSX 60 VIX readings suggest a bull market.
Canada’s TSX 60 followed through above 775 after a short consolidation, signaling an advance to 800* — close to the 2011 high of 820. Rising 13-week Twiggs Money Flow indicates buying pressure. Reversal below support at 740 is most unlikely.
* Target calculation: 740 + ( 740 – 680 ) = 800
TSX 60 VIX retreated below 15, indicating low market risk.
The S&P 500 is again testing resistance at 1700 after a short retracement. Bearish divergence on 21-day Twiggs Money Flow continues to warn of selling pressure, but breakout above 1700 would signal an advance to 1800*. Reversal below 1675 would test support at 1650.
* Target calculation: 1680 + ( 1680 – 1560 ) = 1800
But the primary up-trend shown on the quarterly chart is healthy and, while correction to the rising trendline would be reasonable, trend reversal is unlikely.
The VIX below 15 indicates low market risk.
Canada’s TSX 60 VIX is similarly bullish.
The TSX Composite Index is testing support at 12400. Penetration of the declining trendline would indicate the correction is over and advance to 12900/13000 likely. A 21-day Twiggs Money Flow trough above zero would suggest a healthy up-trend. Breach of support remains as likely, however, and would test 12250. In the long-term, breakout above 12900/13000 would offer a long-term target of 14000*.
* Target calculation: 13000 + ( 13000 – 12000 ) = 14000
