- Euro weakens.
- Stocks in a strong up-trend.
The Euro is testing primary support and the rising trendline at $1.35 on the weekly chart. Bearish divergence on 13-week Twiggs Momentum, followed by a cross below zero, warns of a trend reversal. Breach of support would strengthen the signal. Recovery above $1.37, however, would suggest another test of $1.40.
Dow Jones Euro Stoxx 50 is trending strongly on the monthly chart. Recovery of 13-week Twiggs Momentum above 10% would complete another trough above zero, further strengthening the trend. Reversal below 3000 and the primary trendline is most unlikely, but would warn of a reversal.
* Target calculation: 3200 + ( 3200 – 3000 ) = 3400
The Footsie is again testing resistance at 6850. Follow-through above 6900 would signal an advance to 7200*. Falling 13-week Twiggs Money Flow indicates short-term selling pressure, but long-term oscillations above zero reflect strong buying pressure. Reversal below 6800 is less likely, but would warn of another correction.
* Target calculation: 6800 + ( 6800 – 6400 ) = 7200
The DAX is sitting at the psychological barrier of 10000. Expect retracement to test support at 9800. Respect is likely and follow-through above 10000 would signal an advance to 10500* Recovery of 13-week Twiggs Money Flow above the declining trendline suggests that selling pressure is easing. Reversal below 9750/9800 is unlikely, but would warn of a correction to the rising trendline.
* Target calculation: 9750 + ( 9750 – 9000 ) = 10500
Colin, Ignore the technicalities and drill to the last song, click on it , increase sound, close eyes and dream of Paris in the good old days!
Thanks
Thanks Vasso. Our sense of perspective tends to be badly skewed at times.