Footsie under selling pressure

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.

FTSE 100

Europe: Unleash the bulls

Spain’s Madrid General Index broke resistance at 900, indicating a long-term advance to 1050* (960* in the medium-term). Rising 13-week Twiggs Money Flow indicates buying pressure. Reversal below 840 is unlikely, but would warn of a bull trap.
Madrid General Index

* Target calculation: 900 + ( 900 – 750 ) = 1050; 900 + ( 900 – 840 ) = 960

Germany’s DAX is similarly testing resistance at 8500. Breakout would offer a medium-term target of 9000* and a long-term target of 9500*. Recovery of 13-week Twiggs Momentum above 10% would also signal continuation of the primary up-trend.
DAX Index

* Target calculation: 8500 + ( 8500 – 8000 ) = 9000; 8500 + ( 8500 – 7500 ) = 9500

France’s CAC-40 is testing resistance at 4120. Breakout would offer a medium-term target of 4300*, but follow-through above its 2011 high at 4200 would also confirm a long-term advance to 4500*. Reversal below 3900 is unlikely but would warn of a bull trap.
CAC-40 Index

* Target calculation: 4100 + ( 4100 – 3900 ) = 4300; 4050 + ( 4050 – 3600 ) = 4500

Italy’s MIB Index is also testing resistance, at 17700. Money Flow indicates strong buying pressure and breakout above 18000 would signal a long-term advance to 20000*. Reversal below 16500 is most unlikely, but would again warn of a bull trap.
MIB Index

* Target calculation: 17500 + ( 17500 – 15000 ) = 20000

The FTSE 100 is far more subdued, encountering resistance at 6600 after an end to the recent correction. Follow-through above 6700 would signal a medium-term advance to the 1999 high of 7000*, but reversal below 6500 would warn of another test of medium-term support at 6400. Failure of 6400, while unlikely, would test primary support at 6000.
FTSE 100 Index

FTSE & DAX face stubborn resistance

The FTSE 100 followed-through above initial resistance at 6500, indicating another test of 6700/6750. Breakout above 6750 would offer a target of 7500*, but bearish 13-week Twiggs Money Flow continues to warn of selling pressure. Reversal below 6400 would warn of a test of primary support at 6000.

FTSE 100 Index

* Target calculation: 6750 + ( 6750 – 6000 ) = 7500

Germany’s DAX respected support at 8000, indicating another test of stubborn resistance at 8500. Declining momentum suggests the primary up-trend is slowing. Reversal below support at 8000 would confirm, while breakout above 8500 would offer a long-term target of 9000*.

DAX Index

* Target calculation: 8400 + ( 8400 – 7800 ) = 9000

Global markets bearish but ASX, India find support

US markets are closed for Labor Day. The S&P 500 ended last week testing its rising trendline and support at 1630. Breach would reinforce the bearish divergence on 21-day Twiggs Money Flow, indicating a test of primary support at 1560. Recovery above the descending trendline is unlikely at present, but would warn the correction is ending. In the long-term, failure of primary support would offer a target of 1400*.

S&P 500 Index

* Target calculation: 1550 – ( 1700 – 1550 ) = 1400

VIX below 20 suggests a bull market.
S&P 500 Index

The FTSE 100 closed above initial resistance at 6500. Follow-through would suggest the correction is over and another attempt at 6750 likely. Strong bearish divergence on 13-week Twiggs Money Flow, however, warns of selling pressure and breakout above 6750 is unlikely. Reversal below 6400 would warn of a test of primary support at 6000.

FTSE 100 Index

Germany’s DAX encountered stubborn resistance at 8500. Reversal below 8000 would test primary support at 7600, while breakout above 8500 would offer a target of 9000*.

DAX Index

* Target calculation: 8400 + ( 8400 – 7800 ) = 9000

Japan’s Nikkei 225 recovered above 13500 and follow-through above the descending trendline would suggest the correction is over and another test of resistance at 15000 is likely. Reversal below 13200, however, would indicate a test of primary support at 12500. Earlier bearish divergence on 13-week Twiggs Money Flow warns of long-term selling pressure.

Nikkei 225 Index

China’s Shanghai Composite is testing resistance at 2100/2120. Bearish divergence on 13-week Twiggs Money Flow warns of selling pressure. Reversal below 2050 would indicate another test of primary support at 1950. Breakout above 2200 and the descending trendline is unlikely, but would suggest that the down-trend is ending.

Shanghai Composite Index

India’s Sensex encountered strong support at 18000/18500, evidenced by the long tails on the weekly candles and rising 13-week Twiggs Money Flow.  Expect another test of resistance at 20500. Follow-through above 19000 would strengthen the signal.

BSE Sensex Index

The ASX 200 is headed for a test of 5250 after breaking resistance at 5150. Rising 13-week Twiggs Money Flow indicates medium-term buying pressure. Breakout above 5250 would be a welcome sign, suggesting another primary advance, but respect of resistance and a lower peak on Twiggs Money Flow would warn of a reversal.

ASX 200 Index

* Target calculation: 5250 + ( 5250 – 4750 ) = 5750

Europe: Improving but beware of The Joker

Monthly charts best reflect the state of play in Europe. Germany and France are improving but there are still pockets of weakness elsewhere that threaten to destabilize the monetary union.

Germany’s DAX recovered above its 2007 high at 8200. Reversal below 8000 would indicate hesitancy, with another test of primary support (and rising trendline) at 7600. But the up-trend is intact and follow-through above 8500 would offer a long-term target of 9500*. Momentum is slowing but 13-week Twiggs Momentum holding above zero suggests continuation of the up-trend.
DAX Index

* Target calculation: 8500 + ( 8500 – 7500 ) = 9500

The FTSE 100 fell through support at 6500 but the long tail indicates buying pressure. Reversal below 6400 would confirm a correction to the rising trendline. Breakout above 6750 would signal an advance to the 1999 high of 7000, but strong bearish divergence on 13-week Twiggs Money Flow warns of a correction. Breach of primary support at 6000 would signal a reversal.
FTSE 100 Index
France’s CAC-40 is headed for another test of its 2011 high at 4200. Breakout would offer a long-term target of 4800*. Reversal below 3600 is unlikely but would signal a primary down-trend.
CAC-40 Index

* Target calculation: 4200 + ( 4200 – 3600 ) = 4800

Italy’s MIB Index is testing resistance at 18000. Momentum is weakening so one needs to be prepared for another correction. But breakout would offer a target of 21000*.
MIB Index

* Target calculation: 18000 + ( 18000 – 15000 ) = 21000

Adam Taylor at Business Insider quotes Tim Parks from New York Review of Books:

If Nixon had refused to accept impeachment and had tried somehow to hang on to power, he would have been summarily removed. The same goes for any leader in Europe’s main democracies. Most will step down at the first sign of a serious criminal charge against them, aware that their parties will not support someone who damages their cause. The truly disquieting aspect of the present situation in Italy is not so much Berlusconi’s brazenness, but that his blackmail is possible and credible, that he has such complete control over such a large political party, and that he still commands considerable popular support. Astonishing as it may seem to those not familiar with the country, even serious newspapers and respectable commentators seem reluctant to insist on the enforcement of law, rarely mentioning the details of his crimes and actually giving credence to the argument that removing Berlusconi from the political scene would amount to disenfranchising the millions of voters who supported him at the previous election, as if there was no autonomous party in parliament to represent their views, as if they were not free to choose another leader before the next election.

The Joker may still have the last laugh.
Silvio Berlusconi as The Joker

Reproduced with thanks to Vincos on Flickr.com.

Spain’s Madrid General Index is testing resistance at 900. Momentum is weakening so, again, be prepared for another correction. But breakout above 900 would indicate an advance to 1050*.
Madrid General Index

* Target calculation: 900 + ( 900 – 750 ) = 1050

Europe: DAX bullish, but FTSE selling pressure

Germany’s DAX recovered above the 2007 high at 8200. Follow-through above 8500 would offer a long-term target of 9500*. Rising 13-week Twiggs Money Flow indicates buying pressure. Reversal below 8000 is now unlikely, but would warn of another test of primary support at 7700.
DAX Index

* Target calculation: 8500 + ( 8500 – 7500 ) = 9500

The FTSE 100 is consolidating between 6500 and the 2007 high of 6750. Breakout above 6750 would signal an advance to the 1999 high of 7000. Bearish divergence on 13-week Twiggs Money Flow, however, warns of a correction. Reversal below 6500 is likely, and would indicate a test of 6000.
FTSE 100 Index

Spain’s Madrid General Index is testing resistance at 900. Long-term 13-week Twiggs Money Flow remains weak, but breakout above 900 would indicate an advance to 1050*.
Madrid General Index

* Target calculation: 900 + ( 900 – 750 ) = 1050

Europe: DAX and FTSE 100 recovery

Germany’s DAX recovered above its 2007/2008 high at 8200, signaling a primary advance with a long-term target of 9500*. Breach of resistance at 8500 would confirm. 13-Week Twiggs Money Flow is above zero, but remains weak, warning of further retracement to test support at 8000. Reversal below 8000 is unlikely, but would warn of another test of the rising trendline around 7700.
DAX Index

* Target calculation: 8500 + ( 8500 – 7500 ) = 9500

The FTSE 100 is testing resistance at the 2008 high of 6750. Breakout would signal an advance to 7500*. Follow-through above the 1999/2000 high at 7000 would confirm. Respect of 6750 would indicate further consolidation above primary support at 6000.
FTSE 100 Index

* Target calculation: 6750 + ( 6750 – 6000 ) = 7500

Italy’s MIB Index respected primary support at 15000. Breakout above resistance at 16000 indicates another test of 17500. Repeated troughs above zero on 13-Week Twiggs Money Flow suggest a healthy up-trend.
MIB Index

Spain’s Madrid General Index displays a weaker retracement above long-term support at 760, while 13-Week Twiggs Money Flow below zero indicates selling pressure. Breakout below 760 would warn of a test of the 2012 low at 600. Respect of support, however, would indicate another rally to 880* — especially if accompanied by breakout above 820 or 13-week TMF recovery above zero.
Madrid General Index

* Target calculation: 820 + ( 820 – 760 ) = 880

FTSE hesitates while DAX gaps ahead

Dow Jones Europe Index is ranging between 270 and 290 on the weekly chart, indicating a weak advance after earlier breaking long-term resistance at 265. Breakout above 290 would signal continuation, but reversal below 270 remains as likely and would warn of a reversal; confirmed if the index follows-through below 265.
Dow Jones Europe Index
The FTSE 100 broke resistance at 6500 (from the March 2013 peak), indicating an advance to 6900. But tall shadows (or candlewicks) on Thursday and Friday warn of short-term selling pressure and reversal of 21-day Twiggs Money Flow below zero strengthens the signal. Breach of support at 6400 would warn of another test of primary support at 6000.
FTSE 100 Index

* Target calculation: 7000 + ( 7000 – 6000 ) = 8000

Germany’s DAX gapped above the declining trendline, signaling another primary advance, with a target of 9300*. Breach of resistance at 8500 would confirm. Recovery of 21-day Twiggs Money Flow above zero indicates medium-term buying pressure. Reversal below 8000 is unlikely, but would warn of another test of 7700.
DAX Index

* Target calculation: 8500 + ( 8500 – 7700 ) = 9300

Europe rallies despite broad selling pressure

The FTSE 100 respected its rising trendline and long-term support at 6000, indicating another test of 6750. Bearish divergence on 13-week Twiggs Money Flow, however, continues to warn of selling pressure. Retreat below 6000 would signal a primary reversal.

FTSE 100 Index

Germany’s DAX also signals strong selling pressure, but recovery above 8000 would suggest another primary advance. Continued respect of the long-term rising trendline reflects a healthy up-trend.
DAX Index

Italy’s MIB Index respected primary support at 15000. Follow-through above 15500 would indicate another test of 17500.  Respect of the zero line by 13-week Twiggs Money Flow indicates healthy buying pressure.
FTSE 100 Index

Spain’s Madrid General Index is edging lower, while 13-week Twiggs Money Flow falling below zero warns of strong selling pressure. Recovery above 800 would suggest another weak rally, while failure of support at 750/760 would offer a long-term target of the 2012 low at 600*.
FTSE 100 Index

* Target calculation: 750 – ( 900 – 750 ) = 600

S&P500 holds strong while Canada and Europe weaken

10-Year Treasury yields broke resistance at 2.50% as bond-holders offload their positions. Expect weak retracement to test the new support level at 2.00%, but recovery above 2.50% is likely and would signal a long-term advance to test resistance at 4.00%. Breakout above 4.00% would end the 31-year secular bear-trend. Rising yields reflect market expectations that the economy will recover, enabling the Fed to curtail further quantitative easing.

10-Year Treasury Yields

The S&P 500 broke support at 1600 and is undergoing a correction to test the long-term rising trendline at 1500. Twiggs Money Flow reflects moderate selling and the primary up-trend looks secure.

S&P 500 Index
My concern is: can the US withstand negative sentiment from global markets? The rising VIX is not yet cause for alarm, with the market shrugging off the last foray above 20, but a spike above 25 would warn of elevated risk.

VIX Index

The TSX Composite broke support at 11900/12000 to signal a primary down-trend. Falling 13-week Twiggs Money Flow continues to warn of selling pressure. Expect a test of the 2012 low at 11250.

TSX Composite Index

The FTSE 100 is testing the rising trendline and support at 6000. Bearish divergence on 13-week Twiggs Money Flow warns of a reversal. Failure of support at 6000 would strengthen the signal.

FTSE 100

Germany’s DAX is headed for a test of the long-term trendline and primary support at 7400/7500. Bearish divergence on 13-week Twiggs Money Flow continues to warn of selling pressure. Breach of 7400 would signal reversal to a primary down-trend.

DAX

Europe: Broad selling pressure

The FTSE 100 encountered selling pressure at 6750, indicated by bearish divergence on 13-week Twiggs Money Flow, and is correcting towards the rising trendline and support at 6000 on the monthly chart. Respect would signal a healthy primary up-trend.

FTSE 100 Index

Germany’s DAX is experiencing strong selling pressure. Medium-term support at 8000 is unlikely to hold, but respect of support at 7500, and the rising trendline, would still signal a healthy up-trend.
DAX Index

Spain’s Madrid General Index also displays selling pressure, with bearish divergence on 13-week Twiggs Money Flow. Reversal below 800 would warn of another test of the 2012 low at 600, confirmed if 750 is broken.
FTSE 100 Index
Italy’s MIB Index found support at 16000 on the daily chart and there is an absence of selling pressure, but the weight of other European markets may drag the index lower. Penetration of the rising trendline would signal a test of primary support at 15000. Recovery above 17000, however, would suggest another primary advance.
FTSE 100 Index

Europe & Asia: Widespread selling pressure

Germany’s DAX respected support at 8000 on its recent retracement. Follow-through above 8500 would confirm a fresh primary advance. Bearish divergence on 13-week Twiggs Money Flow, however, warns of strong selling pressure. Retreat below 8000 would test the rising trendline around 7500.
DAX Index

The FTSE 100 also encountered resistance at its 2007 high, bearish divergence on 13-week Twiggs Money Flow signaling selling pressure. Expect a test of support at 6000. Recovery above 6750 is unlikely but would signal a fresh primary advance.

DJ Europe Index

The Nikkei 225 found support at 12500. Reversal below this level would warn of a decline to 10000. Bearish divergence on 13-week Twiggs Money Flow warns of strong selling pressure. I was interested to read that George Soros was buying Japanese stocks. To me it seems premature.

Nikkei 225 Index

India’s Sensex is headed for a test of medium-term support at 19000. Breach would test primary support at 18000. Respect would indicate another advance, but bearish divergence on 13-week Twiggs Money Flow continues to warn of reversal to a primary down-trend. Failure of primary support at 18000 would confirm.

BSE Sensex Index

Singapore’s Straits Times Index reversed below its new support level at 3300, warning of a bull trap. Follow-through below last week’s low would indicate a test of the long-term trendline around 3000.

Straits Times Index

The Shanghai Composite Index retreated sharply last week and is headed for another test of support at 2150. Breach would signal a fall to 1950. Declining 13-week Twiggs Money Flow warns of selling pressure. A weakening Shanghai Index is bearish for Australian resources stocks.

Shanghai Composite Index

The ASX 200 found support at 4750, while bearish divergence on 13-week Twiggs Money Flow warns of strong selling pressure. The falling Aussie Dollar is forcing a retreat of offshore investors from the market, but the eventual boost to export earnings is likely to present a buying opportunity later. Expect a weak rally followed by decline to 4500.

ASX 200 Index

Bearish signs for stocks

10-Year Treasury yields respected support at 2.05/2.10% with a key reversal (or outside reversal) on Friday, signaling a primary up-trend and possible test of 4.00% in the next few years. The tall shadow on Friday’s candle, however, warns of another test of the new support level before the trend gets under way. Only breakout above 4.00% would end the 31-year secular bear-trend.

10-Year Treasury Yields

The S&P 500 is headed for a test of the lower trend channel at 1600,  declining 21-day Twiggs Money Flow indicating medium-term selling pressure. Breach of support at 1600 would warn of a correction.

S&P 500 Index
The VIX is rising, but only breakout above 20 would indicate something is amiss.

S&P 500 Index

Japan’s Nikkei 225 Index ran into huge selling pressure, falling to 13400 by midday Monday. Expect a test of support at 11500, but the primary trend remains upward. Rising industrial production indicates that Abenomics is starting to take effect.

Nikkei 225 Index

The UK’s FTSE 100 also ran into selling pressure — at its 2007 high of 6750 — with bearish divergence on 13-week Twiggs Money Flow. Expect a correction to test 6000, but the primary trend remains upward.
FTSE 100 Index

Bearish divergence on the Shanghai Composite Index (21-day Twiggs Money Flow) indicates medium-term selling pressure. Expect another test of primary support at 2170. Penetration of the rising trendline would confirm. Breakout above 2460 would complete an inverted head and shoulders reversal (as indicated by orange + green arrows), signaling a primary up-trend, but that appears some way off.

Shanghai Composite Index

China hints at bottom while S&P 500 reverses

10-Year Treasury yields are testing resistance at 2.05/2.10%. Breakout above 2.10% would signal a primary up-trend and possible test of 4.00% in the next few years. Only breakout above 4.00%, however, would end the 31-year secular bear-trend.

10-Year Treasury Yields

The S&P 500 completed a key reversal (or outside reversal), indicating selling pressure. Expect a test of the lower trend channel at 1600.

S&P 500 Index
There is no great movement in the VIX and this so far looks like a normal retracement. A June quarter-end below 1500 looks unlikely, but would present a long-term bear signal.

S&P 500 Index

The UK’s FTSE 100 Index is headed for a test of its year 2000 high at 7000. Expect a correction or consolidation below this level. Breakout remains doubtful but would signal a long-term primary advance.
FTSE 100 Index

Penetration of its descending trendline indicates correction on the Shanghai Composite Index has ended and we can expect another test of resistance at 2500. Breakout above 2500 would complete an inverted head and shoulders reversal (as indicated by orange + green arrows), signaling a primary up-trend. That would be good news for Australia’s beleaguered resources stocks.

Shanghai Composite Index

As traders we follow the trend, but in times like this it is important to remain vigilant.

Europe: Dax faces selling pressure while UK and Italy rally

Germany’s DAX found support at 7500 and is again testing long-term resistance at 8000 (shown on the quarterly chart below). 13-Week Twiggs Momentum and Twiggs Money Flow both display bearish divergences, warning of selling pressure. Reversal below 7500 remains likely and would signal a correction to test the rising trendline.
DAX Index

* Target calculation: 7500 – ( 8000 – 7500 ) = 7000

Italy’s MIB index found support at 15000. Follow-through above 17000 would indicate a primary advance and penetration of resistance at 18000 would confirm the primary up-trend signaled earlier by bullish divergence on 13-week Twiggs Momentum.
FTSE MIB Index

* Target calculation: 18 + ( 18 – 15 ) = 21

The FTSE 100 is testing resistance at 6500. Rising 13-week Twiggs Money Flow and Twiggs Momentum both suggest that breakout is likely — which would signal an advance to 7000.
FTSE 100 Index

* Target calculation: 6500 + ( 6500 – 6000 ) = 7000

Nikkei and ASX 200 rally, while China & Europe weaken

Respect of support at 1540 and the bottom trend channel indicates a S&P 500 rally to test 1600 and the upper channel line. Failure to break resistance at 1600 would warn of a correction as signaled by mild bearish divergence on 21-day Twiggs Money Flow.

S&P 500 Index

* Target calculation: 1350 + ( 1350 – 1100 ) = 1600

The FTSE 100 also respected support, at 6220, but a tall shadow on Monday warns of selling pressure. Reversal of 21-day Twiggs Money Flow below zero would strengthen the signal and breach of support (6220) would signal a test of the primary trendline at 6000.
FTSE 100 Index

* Target calculation: 6220 – ( 6420 – 6220 ) = 6020

Germany’s DAX broke medium-term support at 7500. A 21-day Twiggs Money Flow peak at zero warns of selling pressure. Follow-through below 7400 would signal a test of primary support at 7000. Recovery above 7600 is unlikely, but would test the descending trendline at 7700.
DAX Index

* Target calculation: 7500 – ( 8000 – 7500 ) = 7000

India’s Sensex broke resistance at 19000. Respect of support at 18000 and the rising trendline indicates the primary trend is intact. Mild bullish divergence on 21-day Twiggs Money Flow signals buying pressure. Expect consolidation or short retracement, but follow-through above the descending trendline at 19200 would indicate an advance to 20000.
BSE Sensex Index

* Target calculation: 19000 + ( 19000 – 18000 ) = 20000

China’s Shanghai Composite is testing medium-term resistance at 2250. Breakout would penetrate the descending trendline, indicating the correction is over.
Shanghai Composite Index
Unfortunately the Dow Jones Shanghai Index respected the descending trendline Tuesday, indicating another down-swing to the lower trend channel.
DJ Shanghai Index

Japan’s Nikkei 225 is the star performer, when measured in Yen. Sharp rallies, with frequent gaps, followed by short retracements indicates a strong up-trend. As does 21-day Twiggs Money Flow oscillating clear above the zero line.
Nikkei 225 Index

The ASX 200 met some resistance at 5020, but rising 21-day Twiggs Money Flow indicates buying pressure and breakout would signal a test of 5150.
ASX 200 Index

* Target calculation: 5025 + ( 5025 – 4900 ) = 5150

Europe: FTSE and European markets rising

The FTSE 100 broke out from its rising flag on the weekly chart and is headed for a test of resistance between 6800* (the high from 2007) and 7000 (from 1999). Rising 13-week Twiggs Momentum indicates strong buying pressure.

FTSE 100 Index

* Target calculation: 6400 + ( 6400 – 6000 ) = 6800

Italy’s MIB Index found support at 15500. Respect of zero by 13-week  Twiggs Money Flow would suggest another primary advance. Recovery above 17000 would confirm. Reversal below 15000, however, would warn of a primary down-trend.
FTSE MIB Index
Spain’s Madrid General Index displays buying pressure with rising 13-week Twiggs Money Flow. Breakout above 900 would signal a primary advance to 1000*.
Madrid General Index

* Target calculation: 900 + ( 900 – 800 ) = 1000

Germany’s DAX rallied to test resistance at the 2007 high of 8000. Bearish divergence on 13-week Twiggs Money Flow still warns of selling pressure but breakout above 8000 would overcome this. Reversal below 7500 would indicate a correction to test the rising trendline — rather than a primary trend reversal.

DAX Index
The quarterly chart shows strong resistance between 8000 and 8200. Breakout would offer a long-term target of 10000*.
DAX Index

* Target calculation: 7500 + ( 7500 – 5000 ) = 10000

Europe: DAX selling pressure continues

Germany’s DAX is consolidating between 7500 and 7900. Bearish divergence on 13-week Twiggs Money Flow still warns of selling pressure. Failure of 7500 would indicate a correction to test the rising trendline — around support at 7000.

DAX Index

* Target calculation: 7500 + ( 7500 – 7000 ) = 8000

The Italian MIB Index broke support at 16000. Following the earlier trendline break this warns of a primary reversal. Confirmation would come from breach of primary support at 15000. Reversal of 63-day Twiggs Momentum below zero would strengthen the signal. Respect of primary support would still not mean that trouble is over, as a lower peak followed by failure of primary support may follow.
FTSE MIB Index

The FTSE 100 displays a rising flag on its weekly chart, below resistance at 6400. Upward breakout would offer a target of 6800*. Downward breakout is unlikely but would signal a correction. Another 13-week Twiggs Momentum trough above zero would indicate strength in the primary up-trend.

FTSE 100 Index

* Target calculation: 6400 + ( 6400 – 6000 ) = 6800