The FTSE 100 monthly chart shows how the up-trend since 2009 has lost momentum, forming a large top. Reversal below 4800 would complete the reversal, offering a target of 3500*. Recovery above 6000 is unlikely but would indicate resumption of the up-trend.
* Target calculation: 4800 – ( 6000 – 4800 ) = 3600
Germany’s DAX shows a similar loss of momentum on the monthly chart. Breach of medium-term resistance at 6000 would indicate another test of 5000. Recovery above 7200 is unlikely.
The FTSE 100 is headed for resistance at 5600 but 21-day Twiggs Money Flow reversed below zero warning of short-term selling pressure. Failure of support at 5400 would mean another test of primary support at 5250, while respect would confirm the rally to 5600. In the longer term, breach of the descending trendline (at 5600) would indicate that the down-trend has ended.
Dow Jones Europe Index rallied off primary support at 210. Breach of medium-term resistance at 230 would suggest a rally to the primary descending trendline. 13-Week Twiggs Money Flow, however, continues to display long-term selling pressure. Breach of primary support would offer a long-term target of 160*. Breakout above 265 is unlikely but would indicate an advance to 310*.
* Target calculation: 260 + ( 260 – 210 ) = 310; 210 – ( 260 – 210 ) = 160
Dow Jones Europe Index is testing long-term support at 210. Failure would signal a decline to the 2009 low of 150*. Declining 63-day Twiggs Momentum (below zero) already warns of a primary down-trend, while 13-week Twiggs Money Flow indicates strong selling pressure.
* Target calculation: 210 – ( 270 – 210 ) = 150
The FTSE 100 index is retracing to test resistance at 5600. Respect would indicate another primary decline — to test 5000 — while breach of medium-term support at 5250 would confirm. 63-Day Twiggs Momentum below zero already warns of a primary down-trend. A peak below the zero line would further strengthen the signal.
* Target calculation: 5300 – ( 5600 – 5300 ) = 5000
The FTSE 100 is testing medium-term support at 5250. Failure would mean another test of primary support at 5000/5050. Declining 63-Day Twiggs Momentum (below zero) indicates a primary down-trend. Failure of primary support would confirm.
Germany’s DAX broke medium-term support at 6200, penetration of the rising trendline warning that the up-trend is weakening. Expect a test of primary support at 5400. Reversal of 63-day Twiggs Momentum below zero suggests a primary down-trend. Failure of primary support would confirm.
The broader Dow Jones Europe Index is already testing primary support at 210. Declining 13-week Twiggs Money Flow (below zero) indicates strong selling pressure. Expect failure of support to signal a primary down-trend.
Dow Jones Europe Index found medium-term support at 220 but reversal of 13-week Twiggs Money Flow below zero warns of strong selling pressure. Breach of primary support at 210 would signal a decline to 160*, close to the 2009 low. Respect of support is less likely but would indicate a rally to 260.
* Target calculation: 210 – ( 260 – 210 ) = 160
The FTSE 100 is consolidating above 5250 on the weekly chart. 13-Week Twiggs Money Flow remains above zero but 63-day Twiggs Momentum warns of a primary down-trend. Failure of primary support at 5000/5100 would confirm.
* Target calculation: 5000 – ( 6000 – 5000 ) = 4000
Europe inches closer to the point when the artificial levee, built to protect European banks from market forces, is breached. Germany and France delay the inevitable while they attempt to restore bank balance sheets — by widening interest margins at the expense of depositors and transferring risky bonds to the European Central Bank . They do their utmost to avert a Greek default, because of contagion risk to the rest of the euro-zone, but their actions merely encourage more strident demands from Greece. If the levee breaks, damage will be that much greater because of the build-up of market forces behind the artificial barrier.
Spain’s Madrid General Index broke support at the 2009 low of 700, signaling another primary decline with an immediate target of 600*. Reversal of 13-week Twiggs Money Flow below zero reinforces the signal.
* Target calculation: 750 – ( 900 – 750 ) = 600
Italy’s MIB Index broke primary support at 13000, confirming the earlier signal from 63-day Twiggs Momentum and offering a long-term target of 10000*. Recovery above 13500 is unlikely but would warn of a bear trap.
* Target calculation: 13500 – ( 17000 – 13500 ) = 10000
Germany’s DAX broke support at 6500 and is testing the rising trendline. Support remains strong, with 13-week Twiggs Money Flow holding above zero, but breach of the rising trendline and breach of short-term support at 6200 would indicate a test of primary support at 5400.
France’s CAC-40 is also headed for a test of primary support at 2800. Reversal of 13-week Twiggs Money Flow below zero warns of selling pressure. Failure of primary support would offer a long-term target of 2000*.
* Target calculation: 2800 – ( 3600 – 2800 ) = 2000
The FTSE 100 found short-term support at 5300 but breach of the rising trendline and 63-Day Twiggs Momentum below zero warn of a primary down-trend. Failure of primary support at 5000/5050 would offer a long-term target of 4000*.
* Target calculation: 5000 – ( 6000 – 5000 ) = 4000
Dow Jones Europe Index broke medium-term support at 240, warning of another test of primary support at 210. Reversal of 63-day Twiggs Momentum warns of a primary down-trend. Failure of support would confirm.
The FTSE 100 broke medium-term support at 5600, indicating another test of primary support at 5000/5050. Breach of the rising trendline and retreat of 63-Day Twiggs Momentum below zero both warn of a primary down-trend. Failure of primary support would confirm.
The monthly chart of the Madrid General Index is testing its 2009 low of 700. With unemployment rates (24.4 per cent) similar to the US Great Depression and more than half of Spaniards under 25 jobless, there is no recovery in sight. 63-Day Twiggs Momentum oscillating below zero indicates a strong primary down-trend. Failure of support at 700 would signal another primary decline.
* Target calculation: 750 – ( 900 – 750 ) = 600
Italy’s MIB Index is more resilient, with recovery of 13-week Twiggs Money Flow above zero indicating buying pressure. Expect another test of resistance at 17000.
The CAC-40 monthly chart shows France in a similar fix. Failure of support at 3100 would indicate another test of primary support, close to the 2009 low of 2500. Recovery above 3600, however, would indicate another test of 4000 — especially if accompanied by recovery of 63-day Twiggs Momentum above 10%.
The German DAX respected support at 6500, confirming the primary up-trend. Rising 13-week Twiggs Money Flow indicates strong buying pressure. Expect another test of 7500.
The FTSE 100 respected support at 5600 and breakout above 5800 would signal an advance to 6400*. The 13-week Twiggs Money Flow trough above the zero line indicates buying pressure. Reversal below 5600 is unlikely but would warn that the primary up-trend is weakening.
* Target calculation: 6000 + ( 6000 – 5600 ) = 6400
The monthly chart of the Madrid General Index shows the index testing support at its 2009 low of 700. 13-Week Twiggs Money Flow crossing below zero warns of selling pressure. Failure of support would signal a decline to 600*.
* Target calculation: 750 – ( 900 – 750 ) = 600
France’s CAC-40 found support at 3150 after a sharp correction on the weekly chart. Declining 13-week Twiggs Money Flow — and last week’s gravestone candlestick — warn of selling pressure. Failure of support is likely and would suggest another test of primary support at 2800.
Germany’s DAX is also undergoing a correction but found stronger support at 6500. 13-Week Twiggs Money Flow continues to indicate long-term buying pressure. Respect of support, indicated by follow-through above 6800 would signal a primary advance to 7900*. Failure of support at 6500 is unlikely and would warn that the primary up-trend is weakening.
* Target calculation: 7200 + ( 7200 – 6500 ) = 7900
The FTSE 100 remains in a descending broadening wedge pattern. Upward breakout would indicate an advance to the earlier peak of 6000. Recovery of 21-day Twiggs Money Flow above zero would strengthen the signal, while respect of the zero line (from below) would warn of continued selling pressure. Reversal below 5720 would indicate another test of primary support at 5600.
The monthly chart of the Madrid General Index highlights the extent of Spain’s problems, with the index breaking support at 750 and headed for its 2009 low of 700. A 63-day Twiggs Momentum peak below the zero line warns of a strong down-trend. Failure of 700 would signal a decline to 600*.
* Target calculation: 750 – ( 900 – 750 ) = 600
The broader Dow Jones Europe Index is undergoing a correction on the weekly chart. The sharp fall on 13-week Twiggs Money Flow warns of selling pressure. Failure of medium-term support at 240 is likely and would suggest another test of primary support at 210. Respect of support is unlikely but would indicate that the primary up-trend is intact.
The FTSE 100 is testing support at 5600. Respect would confirm the primary up-trend, indicating an advance to 6400*.
A 13-week Twiggs Money Flow trough above the zero line would signal continued buying pressure. Failure of support, however, would warn that the up-trend is weakening.
* Target calculation: 6000 + ( 6000 – 5600 ) = 6400
