S&P 500 engulfing candle

By Colin Twiggs
June 12th, 2012 1:00 a.m. ET (5:00 p.m. AET)

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Monday's engulfing candle [R] on the S&P 500 warns of reversal to re-test support at 1270. Respect of the zero line (from below) by 21-day Twiggs Money Flow would indicate strong medium-term selling pressure. Failure of support would offer a target of 1200*.

* Target calculation: 1270 - ( 1340 - 1270 ) = 1200

Fedex threatens support

Bellwether transport stock Fedex completed a double top reversal, with a break of the neckline at $88, and is now consolidating between $85 and $90. Retreat of 63-day Twiggs Momentum below zero warns of a primary down-trend. Failure of support at $85 would confirm, suggesting that economic activity is slowing.

* Target calculation: 85 - ( 95 - 85 ) = 75