Italy’s MIB index retreated from resistance at 18000 to re-test the key support level of 17000. Respect would confirm the primary up-trend with an initial target of 19000*. Rising 13-week Twiggs Money Flow indicates long-term buying pressure.
* Target calculation: 17000 + ( 17000 – 15000 ) = 19000
Germany’s DAX primary advance is approaching the 2007 high at 8000/8200. Resistance is evident, with shorter candles over the last two months and 13-week Twiggs Money Flow declining from its 2012 peak. Expect a correction, but long-term buying pressure (signaled by rising 13-week Twiggs Money Flow) should see continuation of the primary up-trend.
* Target calculation: 7500 + ( 7500 – 7000 ) = 8000
The FTSE 100 broke through resistance at 6000 and is advancing toward its 2007 high of 6750*. Rising 13-week Twiggs Money Flow indicates long-term buying pressure, while the recent spike should see strong gains in February.
* Target calculation: 6000 + ( 6000 – 5250 ) = 6750