Europe rallies despite broad selling pressure

The FTSE 100 respected its rising trendline and long-term support at 6000, indicating another test of 6750. Bearish divergence on 13-week Twiggs Money Flow, however, continues to warn of selling pressure. Retreat below 6000 would signal a primary reversal.

FTSE 100 Index

Germany’s DAX also signals strong selling pressure, but recovery above 8000 would suggest another primary advance. Continued respect of the long-term rising trendline reflects a healthy up-trend.
DAX Index

Italy’s MIB Index respected primary support at 15000. Follow-through above 15500 would indicate another test of 17500.  Respect of the zero line by 13-week Twiggs Money Flow indicates healthy buying pressure.
FTSE 100 Index

Spain’s Madrid General Index is edging lower, while 13-week Twiggs Money Flow falling below zero warns of strong selling pressure. Recovery above 800 would suggest another weak rally, while failure of support at 750/760 would offer a long-term target of the 2012 low at 600*.
FTSE 100 Index

* Target calculation: 750 – ( 900 – 750 ) = 600