Germany’s DAX formed a narrow line (or consolidation) between 10200 and 10800 over the last quarter, in line with its earlier April/May highs. Declining Twiggs Money Flow is typical during a consolidation and does not have much significance unless it crosses below zero. Breakout above 10800 would signal a primary advance with a target of 11500*. Reversal below 10200, however, should not be ruled out before then.
* Target calculation: 10500 + ( 10500 – 9500 ) = 11500
The Footsie (FTSE 100) found support at 6700 but short candlestick bodies and declining Twiggs Money Flow indicate a dull rally, without much enthusiasm from buyers. Breach of 6700 is likely and would warn of a correction to 6500.
Germany’s DAX is consolidating below 10800 but Twiggs Money Flow still reflects selling pressure. Breakout above 10800 would signal a primary advance with a target of 11500* but another test of 10200 looks equally likely.
* Target calculation: 10500 + ( 10500 – 9500 ) = 11500
The Footsie (FTSE 100) is testing support at 6700. Narrow candlestick bodies for the last two weeks signal indecision, while declining Twiggs Money Flow warns of medium-term selling pressure. Breach of 6700 would warn of a correction to 6500. Respect of support is less likely but would indicate another test of 7100.
Dow Jones Euro Stoxx 50 remains trapped below resistance at 3100, ranging between 2900 and 3100 for most of the year. Rising Twiggs Money Flow indicates buying pressure, however, and breakout above 3100 would suggest the start of a primary up-trend.
Germany’s DAX is testing resistance at 10800 after a shallow, saucer-shaped correction. Declining Twiggs Money Flow has leveled off above zero. Breakout would signal a primary advance with a target of 11500*.
* Target calculation: 10500 + ( 10500 – 9500 ) = 11500
Narrow consolidation on the FTSE 100, below long-term resistance at 7100, is a bullish sign. The decline in Twiggs Money indicates medium-term selling pressure, not long-term. Breakout above 7100 would offer a long-term target of 8000. Retreat below 6900, however, would warn of a correction to 6500.
The FTSE 100 is testing long-term resistance at 7000/7100. Declining Twiggs Money warns of selling pressure. Retreat below 6950 would warn of a correction to test 6500.
The quarterly chart below shows the FTSE 100 first tested 7000 resistance in December 1999, reaching a high of 6950, and has struggled to break clear of this level ever since.
With the pound approaching record lows from 1985, and exports expected to rise, the Footsie finally has a decent chance of breaking clear.
Germany’s DAX is consolidating between 10200 and 10800. Declining Twiggs Money Flow has leveled off above zero. Recovery above 10800 would signal a primary advance with a target of 11500*.
* Target calculation: 10500 + ( 10500 – 9500 ) = 11500
The FTSE 100 has run into stubborn long-term resistance at 7000/7100. Declining Twiggs Money warns of selling pressure. Follow-through below the last two weeks’ lows would warn of a correction to test 6500.
