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Monday, July 22, 2013

S&P 500 breakout

By Coling Twiggs

Sydney, Jul.22, stock picks .- Short candles on the S&P 500 indicate some opposition, but breakout above resistance at 1675 indicates an advance to 1800*. Follow-through above 1700 would strengthen the signal. The 21-day Twiggs Money Flow trough above zero indicates medium-term buying pressure — and a healthy up-trend. Reversal below 1650 is unlikely, but would warn of another test of primary support at 1560.


S&P 500
* Target calculation: 1680 + ( 1680 - 1560 ) = 1800
The VIX below 15 suggests low market risk.
VIX Index
The TSX Composite Index is advancing towards resistance at 12900. Breakout would signal a primary advance, with a long-term target of 14000*. Follow-through above 13000 would strengthen the signal. Breach of the declining trendline on 13-week Twiggs Money Flow would also suggest improving buying pressure. Respect of 12900, however, and reversal of 13-week TMF below zero, would warn of another test of 11750.
TSX Composite
* Target calculation: 13000 + ( 13000 - 12000 ) = 14000 ...
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