The FTSE 100 encountered selling pressure at 6750, indicated by bearish divergence on 13-week Twiggs Money Flow, and is correcting towards the rising trendline and support at 6000 on the monthly chart. Respect would signal a healthy primary up-trend.
Germany’s DAX is experiencing strong selling pressure. Medium-term support at 8000 is unlikely to hold, but respect of support at 7500, and the rising trendline, would still signal a healthy up-trend.
Spain’s Madrid General Index also displays selling pressure, with bearish divergence on 13-week Twiggs Money Flow. Reversal below 800 would warn of another test of the 2012 low at 600, confirmed if 750 is broken.
Italy’s MIB Index found support at 16000 on the daily chart and there is an absence of selling pressure, but the weight of other European markets may drag the index lower. Penetration of the rising trendline would signal a test of primary support at 15000. Recovery above 17000, however, would suggest another primary advance.
