The FTSE 100 broke out from its rising flag on the weekly chart and is headed for a test of resistance between 6800* (the high from 2007) and 7000 (from 1999). Rising 13-week Twiggs Momentum indicates strong buying pressure.
* Target calculation: 6400 + ( 6400 – 6000 ) = 6800
Italy’s MIB Index found support at 15500. Respect of zero by 13-week Twiggs Money Flow would suggest another primary advance. Recovery above 17000 would confirm. Reversal below 15000, however, would warn of a primary down-trend.
Spain’s Madrid General Index displays buying pressure with rising 13-week Twiggs Money Flow. Breakout above 900 would signal a primary advance to 1000*.
* Target calculation: 900 + ( 900 – 800 ) = 1000
Germany’s DAX rallied to test resistance at the 2007 high of 8000. Bearish divergence on 13-week Twiggs Money Flow still warns of selling pressure but breakout above 8000 would overcome this. Reversal below 7500 would indicate a correction to test the rising trendline — rather than a primary trend reversal.
The quarterly chart shows strong resistance between 8000 and 8200. Breakout would offer a long-term target of 10000*.
* Target calculation: 7500 + ( 7500 – 5000 ) = 10000