Stocks are recovering from their recent soft patch and breakout above resistance is likely, signaling further gains.
The S&P 500 is testing medium-term resistance at 2120. Breakout would signal an advance to 2200*. Three weekly candles with long tails reflect medium-term buying pressure, while a 13-week Twiggs Money Flow trough high above zero indicates long-term pressure. Retracement that respects the new support level at 2100 would further strengthen the bull signal.
* Target calculation: 2120 + ( 2120 – 2040 ) = 2200
CBOE Volatility Index (VIX) at 12 indicates low risk typical of a bull market.
Dow Jones Industrial Average is testing resistance at 18300. Buying pressure appears similar to the S&P 500 and breakout would offer a target of 19000*.
* Target calculation: 18300 + ( 18300 – 17600 ) = 19000
Canada’s TSX 60 found support at 870. 13-Week Twiggs Momentum holding above zero continues to indicate a primary up-trend. Breakout above 900 would offer a long-term target of 1000*.
* Target calculation: 900 + ( 900 – 800 ) = 1000