S&P 500 up-trend continues

The S&P 500 encountered solid support at 2000. Rising 13-week Twiggs Money Flow indicates buying pressure. Recovery above the descending trendline is likely and would indicate the end of the correction. Breakout above 2080 would confirm another advance with a target of 2200*. Failure of support is unlikely, but would test the primary trendline at 1900.

S&P 500

* Target calculation: 2100 + ( 2100 – 2000 ) = 2200

CBOE Volatility Index (VIX) retreated below 20, reassuring that risk remains low to moderate.

VIX Index

Bellwether transport stock Fedex continues in a primary up-trend, signaling that economic activity levels are improving.


Small caps also remain in an up-trend, with the Russell 2000 consolidating between 10.50 and 12.0. Retreat of 13-week Twiggs Momentum close to the zero line is typical of a ranging market. Breakout above 12.00 would signal a primary advance with a target of 13.0*; follow-through above 12.10 would confirm. Reversal below 10.50 is unlikely, but would warn of a bear market.

Russell 2000

* Target calculation: 12 + ( 12 – 11 ) = 13

Victory attained by violence is tantamount to a defeat, for it is momentary.
~ Mahatma Gandhi