Nasdaq 100 and S&P 500 threaten a correction

The Nasdaq 100 is testing medium-term support at 2630. Reversal of 21-day Twiggs Money Flow below zero warns of a correction; follow-through below Friday’s low of 2620 would confirm, offering an initial target of 2400.

Nasdaq 100 Index

The S&P 500 continues to test support at 1350/1370 on the weekly chart after penetrating its rising trendline. Declining 13-week Twiggs Money Flow indicates medium-term selling pressure. Failure of support would signal a correction with an initial target of 1300*, but the primary up-trend is not under immediate threat.

S&P 500 Index Weekly Chart

* Target calculation: 1350 – ( 1400 – 1350 ) = 1300

4 thoughts on “Nasdaq 100 and S&P 500 threaten a correction

  1. Alan Buck says:

    Just curious. Sometimes you use the Money Flow indicator and other times you use the Momentum Oscillator during your analysis of the same class of security. For example today you used them in the analysis of several index products. Other times it might be commodities. Why?

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