Germany’s DAX is retracing for another test of support at 9300 and 13-week Twiggs Money Flow retreat below zero, after a bearish divergence, warns of long-term selling pressure. Failure of support would warn of a primary down-trend, while breach of primary support at 9000/8900 would confirm. Respect of support is unlikely, but recovery above 9800 would suggest another advance.
* Target calculation: 9000 – ( 10000 – 9000 ) = 8000
The Footsie is also likely to test primary support at 6400/6500. Divergence on 13-week Twiggs Money Flow, however, is nowhere near as bearish as the DAX and stronger support is likely.
* Target calculation: 6500 – ( 6900 – 6500 ) = 6100