S&P 500 bull market on track

The S&P 500 is undergoing a secondary correction that is likely to test the long-term rising trendline and support at 2400. Bearish divergence on Twiggs Money Flow warns of selling pressure but this seems secondary in nature. The bull market remains on track for further gains.

S&P 500

Target 2400 + ( 2400 – 2300 ) = 2500

The Dow Jones Transportations Average is also undergoing a correction. Bearish divergence with Twiggs Money Flow dipping below zero warns of stronger selling pressure. Expect a test of primary support at 8800.

Dow Transportation Average

The Nasdaq 100 is retreating from resistance at 6000. Bearish divergence warns of secondary selling pressure. Breach of primary support at 5600 is considered unlikely.

Nasdaq 100

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