The FTSE 100 index broke resistance (and the descending trendline) at 5600/5620, suggesting the correction has ended. Oscillation of 63-day Twiggs Momentum around zero is narrowing, indicating hesitancy. Follow-through above 5650 would strengthen the breakout signal — as would recovery of 63-day Twiggs Momentum above zero — targeting 6000*. Reversal below 5600, however, would warn of a false signal.
* Target calculation: 5600 + ( 5600 – 5200 ) = 6000
Germany’s DAX is testing resistance at 6500; breakout would test the 2012 high of 7200. Rising 13-week Twiggs Money Flow (not shown) indicates buying pressure. Recovery of 63-day Twiggs Momentum above zero would strengthen the signal.
* Target calculation: 6500 + ( 6500 – 6000 ) = 7000
The Madrid General Index is headed for a test of medium-term resistance at 750/760. Bullish divergence on 13-week Twiggs Money Flow indicates buying pressure. Penetration of resistance — and the long-term descending trendline — would indicate a bottom is forming.
Italy’s MIB Index shows a similar bullish divergence on 13-week Twiggs Money Flow (not shown) — and on 63-day Twiggs Momentum. Recovery above 15000 would signal another test of long-term resistance at 17000.
* Target calculation: 15000 + ( 15000 – 13000 ) = 17000