Germany’s DAX recovered above its 2007/2008 high at 8200, signaling a primary advance with a long-term target of 9500*. Breach of resistance at 8500 would confirm. 13-Week Twiggs Money Flow is above zero, but remains weak, warning of further retracement to test support at 8000. Reversal below 8000 is unlikely, but would warn of another test of the rising trendline around 7700.
* Target calculation: 8500 + ( 8500 – 7500 ) = 9500
The FTSE 100 is testing resistance at the 2008 high of 6750. Breakout would signal an advance to 7500*. Follow-through above the 1999/2000 high at 7000 would confirm. Respect of 6750 would indicate further consolidation above primary support at 6000.
* Target calculation: 6750 + ( 6750 – 6000 ) = 7500
Italy’s MIB Index respected primary support at 15000. Breakout above resistance at 16000 indicates another test of 17500. Repeated troughs above zero on 13-Week Twiggs Money Flow suggest a healthy up-trend.
Spain’s Madrid General Index displays a weaker retracement above long-term support at 760, while 13-Week Twiggs Money Flow below zero indicates selling pressure. Breakout below 760 would warn of a test of the 2012 low at 600. Respect of support, however, would indicate another rally to 880* — especially if accompanied by breakout above 820 or 13-week TMF recovery above zero.
* Target calculation: 820 + ( 820 – 760 ) = 880