The FTSE 100 is retracing to test its (secondary) rising trendline on the daily chart. Respect would signal another advance — as would a 21-day Twiggs Money Flow trough above zero.
* Target calculation: 6000 + ( 6000 – 5250 ) = 6750
Germany’s DAX is retracing to test support at 7500 on the monthly chart. Bullish divergence on 13-week Twiggs Money Flow warns of selling pressure. Breach of support would indicate a correction to test the rising trendline — around 7000.
* Target calculation: 7500 + ( 7500 – 7000 ) = 8000
Italy’s MIB index retreated below the new support level of 17000. Breach of the rising trendline — and support at 16000 — would warn of a bull trap. But a 63-day Momentum trough above zero would signal a primary advance to 19000*.
* Target calculation: 17000 + ( 17000 – 15000 ) = 19000