Germany’s DAX is retracing, but as long as it respects medium-term support at 8000, the primary advance is intact. Breakout above resistance at 8500 would offer a long-term target of 9500*. A 21-day Twiggs Money Flow trough above zero would strengthen the signal. Reversal below 8000 is unlikely, but would warn of another test of primary support at 7700.
* Target calculation: 8500 + ( 8500 – 7500 ) = 9500
The FTSE 100 displays selling pressure, with 21-day Twiggs Money Flow retreating below zero. Reversal below 6500 would warn of another correction. Respect of 6500 is unlikely but would indicate an advance to 6900/7000.
* Target calculation: 6750 + ( 6750 – 6000 ) = 7500
Italy’s MIB Index is heading for a test of 17500 after breaking resistance at 16000. Repeated troughs above zero on 13-Week Twiggs Money Flow suggest a healthy up-trend.
Spain’s Madrid General Index broke resistance at 800, indicating a rally to 900. Long-term 13-week Twiggs Money Flow recovered above zero but remains weak. Reversal below 760 is unlikely, but would warn of a test of the 2012 low at 600.
