Indices Mundiales

Nasdaq 100 and S&P 500 threaten correction

By Colin Twiggs
May 8th, 2012 5:00 a.m. ET (7:00 p.m. AET)

These extracts from my trading diary are for educational purposes and should not be interpreted as investment or trading advice. Full terms and conditions can be found at Terms of Use.

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.

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.

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

UK & Europe: France rejects austerity

Election of French Socialist Francois Hollande may lead to a similar rejection of austerity measures by Spain and Italy, creating a clear fault-line between the uncompromising German-led North and a more socialist French-led South. That could eventually lead to fracture of the euro-zone unless the two camps discover a new spirit of compromise. Be prepared for a rough ride.
The CAC-40 index rallied Monday and recovery above 3300 would indicate that the correction is over. Respect of the zero line by 13-week Twiggs Money Flow would signal buying pressure. Failure of support at 3100, however, would indicate another test of primary support at 2800.

Spain's Madrid General Index continues in a strong primary down-trend, with 63-Day Twiggs Momentum oscillating below zero. Failure of support at the 2009 low of 700 would signal another primary decline.

* Target calculation: 750 - ( 900 - 750 ) = 600

63-Day Twiggs Momentum (below zero) also indicates a primary down-trend on Italy's MIB Index but this week's blue candle suggests support at 13500. Recovery above 15000 would signal another test of 17000. Failure of support, however, would offer a long-term target of 10000*.

* Target calculation: 13500 - ( 17000 - 13500 ) = 10000

The German DAX continues to test the rising trendline and support at 6500. Rising 13-week Twiggs Money Flow suggests strong buying pressure. Respect of support would confirm the primary up-trend and test the 2011 high at 7600.

London Stock Exchange was closed Monday. The FTSE 100 is again testing support at 5600 and failure would warn of another test of primary support at 5000/5050. Breach of the rising trendline would also signal that the up-trend is losing momentum. Retreat of 63-Day Twiggs Momentum below zero would warn of a primary down-trend.

More....

For more coverage click here:

ASX 200 retreats

China & Hong Kong

Fedex double top

Canada: TSX 60 breaks support

Commodity and stock prices diverge

People always have been the foolish victims of deception and self-deception in politics, and they always will be, until they have learned to seek out the interests of some class or other behind all moral, religious, political and social phrases, declarations and promises.

~ Vladimir Ilyich Lenin

Customize Your Newsletter Profile Receive only those newsletters which match your interests. To customize or cancel your newsletter selection click here.