European markets

The FTSE 100 is testing resistance at 5750 but bearish divergence on 13-week Twiggs Money Flow warns of selling pressure. Respect of resistance would suggest another test of primary support at 5050. Upward breakout is less likely, but would indicate an advance to 6300*.

FTSE 100 Index

* Target calculation: 5700 + ( 5700 – 5100 ) = 6300

The DAX is testing resistance at 6400. Breakout would indicate an advance to 7400*, but reversal of  below the rising trendline — or 13-week Twiggs Money Flow below zero — would warn of another test of primary support at 5000.

DAX Index

* Target calculation: 6400 + ( 6400 – 5400 ) = 7400

Italy’s MIB Index is more hesitant than the DAX. Breakout above 17000 would signal a primary advance, but failure of support at 13000 would indicate a decline to 9000*. Reversal of 13-week Twiggs Money Flow below zero would warn of increased selling pressure.

FTSE MIB Index

* Target calculation: 13 – ( 17 – 13 ) = 9