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.
DAX
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
Footsie bullish
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.
Footsie faces stubborn resistance
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.
DAX levels off
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
Footsie runs into strong resistance
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.
DAX support at 10500
Germany’s DAX is testing support at 10500. Declining Twiggs Money Flow warns of selling pressure. Follow-through below recent lows would warn of a correction to the rising long-term trendline.
* Target calculation: 10500 + ( 10500 – 9500 ) = 11500
May Looks Beyond Brexit | Bloomberg
Robert Hutton at Bloomberg discusses Theresa May’s speech, Wednesday, at the Conservative Party’s annual conference:
….May’s comments mark a change of emphasis from the views of her predecessor. In his 11 years as Tory leader, David Cameron argued that the party needed to show that it was in touch with modern Britain by focusing on climate change and gay rights. May, by contrast, argues that the party needs to reach “ordinary working-class people.”
She’ll say she sees the role of the government as providing “what individual people, communities and markets cannot.” And she’ll argue that this means “providing security from crime, but from ill health and unemployment too. Supporting free markets, but stepping in to repair them when they aren’t working as they should. Encouraging business and supporting free trade, but not accepting one set of rules for some and another for everyone else.”
….three senior figures in May’s administration said financial-services companies would get no special favors. The extracts of May’s speech suggest she thinks Cameron was too focused on that sector. “If we act to correct unfairness and injustice and put government at the service of ordinary working people,” she’ll say, “we can build that new united Britain in which everyone plays by the same rules, and in which the powerful and the privileged no longer ignore the interests of the people.”
Source: May Looks Beyond Brexit to Portray Herself as Workers’ Tribune – Bloomberg
Europe: DAX & Footsie on the mend
Germany’s DAX is testing support at 10500. Respect would confirm the primary up-trend. This week’s long tail and a Twiggs Money Flow trough above zero indicate buying pressure. Follow-through above 10800 would complete a bear trap — a bullish signal with a target of 11500*.
* Target calculation: 10500 + ( 10500 – 9500 ) = 11500
The FTSE 100 is also rallying, to test long-term resistance at 7000/7100. Rising troughs on Twiggs Money flow signal long-term buying pressure.
UK: Footsie rallies
The Footsie rebounded after a short retracement — a bullish sign. Expect strong resistance at 7000/7100 but completion of another trough on Twiggs Money Flow, high above zero, would signal strong buying pressure.
* Target calculation: 6500 + ( 6500 – 5900 ) = 7100