The FTSE 100 index is meeting selling pressure in its rally to test resistance at 5600, evidenced by tall shadows on the last two candles. Reversal of 13-week Twiggs Money Flow below zero would strengthen the signal. Failure of support at 4800 would offer a target of 4000*.
* Target calculation: 4800 – ( 5600 – 4800 ) = 4000
The DAX Index also displays tall shadows on the last two weekly candles. The rally to test 6400 is particularly weak, with decline of 13-week Twiggs Money Flow below zero warning of strong selling pressure. Reversal below 5400 would offer a target of 4400*.
* Target calculation: 5400 – ( 6400 – 5400 ) = 4400
The CAC-40 displays similar selling pressure. Breakout below 2900 would offer a target of 2500*.
* Target calculation: 2900 – ( 3300 – 2900 ) = 2500