The FTSE 100 is testing support at 5000. Failure would warn of a down-swing to 4400*, but long tails and rising 21-day Twiggs Money Flow indicate medium-term buying pressure. Respect of support is likely and would continue the line between 5000 and 5450.
* Target calculation: 5000 – ( 5600 – 5000 ) = 4400
Germany’s DAX index displays similar medium-term buying pressure on 21-day Twiggs Money Flow. Respect of support at 5000 is likely and recovery above 5700 would indicate another bear rally.
* Target calculation: 5000 – ( 6000 – 5000 ) = 4000
Hi Colin,
DAX… Don’t you ean a Bull rally above 5700??
No. A bear market rally. There are no bulls left at this stage of the game 🙂
Cheers Colin, I see what you mean.
So at what stage from here would you call a bull rally if the DAX was to break through resistance at 5700? Will the index have to break through 5700 convincingly and then respect support of 5700 and make a new interim high?
Thanks in advance 🙂
At least 3 decent-sized consecutive blue candles on the weekly chart followed by a correction (at least 2 red candles) that respects support at 5000.
Dear Mr. Colin Twiggs
Thank you for sending me your newsletter. I appreciate and learn a lot from it.
But please let me respectfully disagree on the stock market forecast.
I firmly believe we are in a BULL Market since the begining of August. Look at the FTSE intraday chart of the last trading days, using ExpMas of 18 39 81 days.
Look at The Treasuries yields:
30 years under 3 per cent 10 years under 2 per cent (The first time in the last 60 years)
If this does not shout BULLISH, what else?
Thank you for your attention,
Chaim Kimelblat aka Schpekulant@gmail.com
Chaim, Thank you for your view. I believe that Treasury yields are at record lows because investors are flooding out of stocks and into safe havens. Also, take a look at the Monthly 10-year chart of FTSE — it doesn’t look like a bull market. Regards, Colin