The German DAX Index broke support at 5500 to warn of a down-swing to 4500*. Declining 13-week Twiggs Money Flow below zero indicates strong selling pressure.
* Target calculation: 5500 – ( 6500 – 5500 ) = 4500
In France, the CAC-40 Index reversed below support at 3000, led by a sell-off in French banks. Expect support at the 2009 low of 2500, though the calculated target is even lower. 13-Week Twiggs Money Flow again signals strong selling pressure.
* Target calculation: 3000 – ( 3700 – 3000 ) = 2300
The FTSE 100 is consolidating above 5000, but is likely to be dragged lower if major European trading partners fall. Breach of support would offer a target of 4400*.
* Target calculation: 5000 – ( 5600 – 5000 ) = 4400