Dow Jones Euro Stoxx 50 retreated below the first line of support at 3000, warning of a correction to the rising trendline. 13-Week Twiggs Momentum above zero continues to suggest a primary up-trend. A trough above zero would strengthen the signal. Recovery above 3100 is now unlikely, but would signal an advance to 3500*.
* Target calculation: 3000 + ( 3000 – 2500 ) = 3500
Germany’s DAX continues a primary advance with a long-term target of 10000*. Rising 13-week Twiggs Money Flow indicates strong buying pressure. Reversal below 9000, however, would warn of a correction.
* Target calculation: 7500 + ( 7500 – 5000 ) = 10000
France’s CAC-40 also displays long-term buying pressure, with rising 13-week Twiggs Money Flow, but retreat below the new support level at 4200 warns of a correction. Recovery above 4200 is now unlikely, but would indicate an advance to 4400*.
* Target calculation: 4000 + ( 4000 – 3600 ) = 4400
Bearish divergence on the FTSE 100, 13-week Twiggs Money Flow, indicates selling pressure and breach of support at 6600 signals a correction. Follow-through below the lower border of the flag formation (6500) would confirm. Failure of primary support at 6400 and breach of the rising trendline would warn of reversal to a primary down-trend.
* Target calculation: 6700 + ( 6700 – 6400 ) = 7000
Hugely significant sell signal on Dow, FT and DAX evident from these charts. Trend – medium term, spanning 9 to 12 months – reversal in place currently. [ Similarly for ASX 200 ]