USA
The S&P 500
consolidated in a narrow band for most of the week before a strong blue candle
on Thursday signaled another rally to test resistance at 1245.
The long-term
rising
wedge pattern continues. A shorter-term consolidation, between 1245 and
1200, appears to be forming within the wedge pattern; a bullish sign that may
result in a test of the upper border of the larger pattern.
Twiggs
Money Flow (21-day) continues to whipsaw around zero, giving no clear
signal.
After a shaky start to the week, the
Dow Industrial Average rallied
with a strong blue candle on Thursday and appears headed for another test of
resistance at 10700. A close above 10700 would signal another test of 11000;
while a close below 10400 would signal a test of support at 10000.
Twiggs
Money Flow (21-day) has started to strengthen.
In the long term we
can expect strong resistance at 11000 and strong support at 10000, with the
index ranging between the two levels for some time, restraining advances on
other US indices.
The Dow Jones Transportation Average ended its secondary correction
with a sharp rally, following a steep recovery on Fedex and UPS that bodes well
for more than just the transport sector. A rise above the March high would end
the top pattern.
The
Nasdaq Composite respected support at 2100 and appears headed
for a test of resistance at 2200. Though less likely, a close below 2100 would
signal a test of the lower border of the long-term bearish
rising
wedge pattern.
Twiggs
Money Flow (21-day) continues to whipsaw around zero, giving no clear
signal.
