Neurosis: Emotional disorder arising from no apparent organic lesion or change and involving symptoms such as insecurity, anxiety, depression, and irrational fears…… No longer in scientific use.
Eurosis: Economic disorder involving symptoms such as insecurity, anxiety and depression, arising from rational fears of a collapse of the European monetary and banking system……. No longer of much use.
Europe
Dow Jones Europe index encountered (medium-term) resistance at 240. 21-Day Twiggs Money Flow below zero warns of selling pressure. Expect a test of primary support at 210. Failure of support would indicate a fall to 160*.
* Target calculation: 210 – (260 – 210 ) = 160
US
The S&P 500 index is stronger, testing resistance at 1300. Breakout would signal resumption of the primary up-trend. We are likely to see significant window-dressing ahead of the November 2012 election. The market may well respond, but the real picture is bleaker with an economy reliant on deficit-spending in order to avoid a slide back into recession. Respect of resistance at 1300 would warn of another test of primary support at 1160.
Australia
ASX 200 index reflects the middle ground. Rising 21-day Twiggs Money Flow indicates medium-term buying pressure but the index is presently testing primary support at 4000. Failure would signal a fall to 3650*. News of a fresh stimulus program in China, however, should help support resources stocks.
* Target calculation: 4000 – (4350 – 4000 ) = 3650
