Germany’s DAX index is testing resistance at 6000. Penetration of the descending trendline on 13-week Twiggs Money Flow indicates no more than a secondary reaction (bear market rally). Breakout above 6000 would offer a target of 6500, while respect of resistance would re-visit primary support at 5000.
* Target calculation: 5000 – ( 6000 – 5000 ) = 4000
The FTSE 100 is headed for a test of 5600 after breaking resistance at 5400. Rising 13-week Twiggs MoneyFlow indicates a strong bear market rally rather than a reversal.
* Target calculation: 4800 – ( 5600 – 4800 ) = 4000