Europe: Selling pressure

Germany’s DAX is testing resistance at 9000. Reversal below 8900 would suggest another decline with a target of 8000*. 13-Week Twiggs Money Flow below zero warns of long-term selling pressure; a peak below zero would confirm a primary down-trend. Recovery above 9000 is unlikely, but would suggest a rally to 9800.

DAX

* Target calculation: 9000 – ( 10000 – 9000 ) = 8000

The Footsie has also run into resistance, at 6400/6500. Respect would signal a decline to 6100*. Declining 13-week Twiggs Money Flow indicates medium-term selling pressure, but nowhere near as weak as the DAX.

FTSE 100

* Target calculation: 6500 – ( 6900 – 6500 ) = 6100