Madrid General Index broke above 720 to complete a double-bottom reversal with a target of 840*. Bullish divergence on 13-week Twiggs Money Flow indicates buying pressure. Penetration of the descending trendline would strengthen the reversal signal.
* Target calculation: 720 + ( 720 – 600 ) = 840
Italian FTSE MIB Index also completed a double bottom reversal, offering a target of 16500*. Bullish divergence on 13-week Twiggs Money Flow again indicates buying pressure.
* Target calculation: 14500 + ( 14500 – 12500 ) = 16500
The FTSE 100 is headed for a test of major resistance at 6000. Expect strong resistance between 6000 and 6100 because of the number of previous peaks at this level. Breakout would offer a long-term target of 6750*. 13-Week Twiggs Money Flow oscillating above zero suggests a primary up-trend.
* Target calculation: 6000 + ( 6000 – 5250 ) = 6750