Germany’s DAX surged after a brief test of support at 9250/9300. Recovery of 21-Day Twiggs Money Flow above zero indicates short-term buying pressure. A trough above the zero line would reflect medium-term buying pressure. Expect resistance at 9700/9800.
* Target calculation: 9750 + ( 9750 – 9000 ) = 10500
Dow Jones Euro Stoxx 50 also surged, indicating a test of 3250 on the weekly chart. Completion of a 13-week Twiggs Money Flow trough above zero would indicate long-term buying pressure. Reversal below 3100 is unlikely, but would warn of another test of primary support.
* Target calculation: 3150 + ( 3150 – 3000 ) = 3300
The Footsie faces strong resistance between 6750 and 7000, as illustrated on the quarterly chart. 13-Week Twiggs Money Flow oscillating above zero indicates a healthy up-trend, but this is a major psychological barrier to overcome. Breach of support at 6400/6500 is unlikely, but would warn of a reversal.
* Target calculation: 700 + ( 7000 – 6000 ) = 8000