The FTSE 100 closed above 5300, indicating a rally to test resistance at 5600. This behavior is again typical of the early “denial” stage of a bear market. Resistance is likely to hold, leading to another test of 5000. In the longer term, failure of support at 5000 would offer a target of 4400*.
* Target calculation: 5000 – ( 5600 – 5000 ) = 4400
The DAX rallied strongly, headed for a test of 6500 on the weekly chart. The bear market is not over, even if resistance is penetrated.
* Target calculation: 6500 – ( 7500 – 6500 ) = 5500
A CAC-40 recovery above 3250 would signal a rally to test 3700. Expect resistance to hold, followed by another test of 3000*.
* Target calculation: 3000 – ( 3700 – 3000 ) = 2300