Dow Jones Europe Index respected resistance at 260, suggesting another correction. Declining 13-week Twiggs Money Flow indicates medium-term selling pressure; but a trough that respects the zero line would signal a primary up-trend. Respect of support at 240 would also suggest an up-trend.
* Target calculation: 260 + ( 260 – 210 ) = 310
The FTSE 100 is headed for a test of support at 5600. Respect of support would confirm the primary up-trend, as would a 13-week Twiggs Money Flow trough above zero.
* Target calculation: 5500 + ( 5700 – 5100 ) = 6300
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.