Cable drags Footsie lower

Pound Sterling strengthened this week on news of an early election. Despite Brexit fears the Cable, as it is commonly referred to by traders, has been strengthening for several months. Crossover of 13-week Momentum above zero suggests a primary up-trend. Breakout above 1.20 against the Euro would confirm the signal.

Pound Sterling (GBPEUR)

The FTSE 100 retreated from resistance at 7400. Rising troughs on Twiggs Money Flow indicate long-term buying pressure but reversal below 7100 would warn of a correction.

FTSE 100

* Target: 7400 + ( 7400 – 6700 ) = 8100

European advance continues

Dow Jones Euro Stoxx 50, reflecting the top 50 stocks in the Euro monetary area, is consolidating in a narrow band below 3500. Rising Twiggs Money Flow indicates strong buying pressure. Breakout above 3500 is likely and would signal another advance.

Dow Jones Euro Stoxx 50

The FTSE 100 is consolidating in a narrow range below 7400. Rising troughs on Twiggs Money Flow indicate strong buying pressure. Breakout above 7400 is likely and would offer a long-term target of 8000*.

FTSE 100

* Target: 7400 + ( 7400 – 6700 ) = 8100

Europe advances

Germany’s DAX is testing the band of resistance between 12000 and its April 2015 high of 12400. Rising troughs on Twiggs Money Flow indicate strong buying pressure. Breakout is expected but we are likely to experience consolidation below 12400, or a moderate correction, ahead of this.

DAX

The FTSE 100 followed through above resistance at 7350, signaling another advance. Rising troughs on Twiggs Money Flow indicate strong buying pressure. Target for the advance is 7600*.

FTSE 100

* Target: 7350 + ( 7350 – 7100 ) = 7600

Europe advances

Dow Jones Euro Stoxx 50 represents the 50 largest blue chip stocks (Volkswagen, Bayer, Allianz, L’Oreal, Phillips, Unilever, etc.) in the Eurozone, in terms of free-float market capitalization. Breakout above resistance at 3330 signals an advance to 3500*.

Dow Jones Euro Stoxx 50

* Target: 3300 + ( 3300 – 3100 ) = 3500

The FTSE 100 is testing support at its former resistance level of 7350. Rising troughs on Twiggs Money Flow indicate strong buying pressure. Respect of support is likely and would confirm an advance to 7500*.

FTSE 100

* Target: 7100 + ( 7100 – 6700 ) = 7500

Long-term target is 8000: 7000 + (7000 – 6000).

Europe: Long-term buying pressure

The FTSE 100 is consolidating below resistance at 7350. Rising troughs on Twiggs Money Flow indicate strong buying pressure. Breakout above 7350 is likely and would signal an advance to 7500*. The long-term target is 8000.

FTSE 100

* Target: 7100 + ( 7100 – 6700 ) = 7500

Dow Jones Euro Stoxx 50 is similarly consolidating while Twiggs Money Flow reflects long-term buying pressure. Breakout above 3330 would signal a fresh advance with a target of 3500*.

Dow Jones Euro Stoxx 50

* Target: 3300 + ( 3300 – 3100 ) = 3500

Europe: More bull markets

The FTSE 100 continues to advance after respecting its new support level at 7000/7100. Rising troughs on Twiggs Money Flow indicate strong buying pressure. Follow-through above 7350 would signal an advance to 7500*. The long-term target is 8000.

FTSE 100

* Target: 7100 + ( 7100 – 6700 ) = 7500

A weak correction on Dow Jones Euro Stoxx 50 over the last 6 weeks suggests buying pressure, also reflected by rising Twiggs Money Flow. Recovery above 3300 signals a fresh advance with a target of 3500*.

Dow Jones Euro Stoxx 50

* Target: 3300 + ( 3300 – 3100 ) = 3500

Europe: Footsie finds its feet

The FTSE 100 respected its new support level at 7000/7100. Rising Twiggs Money Flow indicates buying pressure. Follow-through above 7350 would signal an advance to 7500* and offer a long-term target of 8000.

FTSE 100

* Target: 7100 + ( 7100 – 6700 ) = 7500

Dow Jones Euro Stoxx 50 is a long way below its 2007 peak at 4500 but has formed a solid base at 3000. Rising Twiggs Money Flow signals long-term buying pressure, while long tails on recent weekly candles indicate shorter term enthusiasm. Recovery above 3300 would signal a fresh advance.

Dow Jones Euro Stoxx 50

Europe: Dax & Footsie strengthen

Both the DAX and FTSE 100 display Twiggs Money Flow troughs above zero, indicating long-term buying pressure.

Germany’s DAX is approaching its 2015 high of 12400. Twiggs Money Flow signals long-term buying pressure but expect resistance between 12000 and 12400.

DAX

The FTSE 100 is retracing to test its new support level at 7000/7100. Rising Twiggs Money Flow indicates buying pressure. Respect of support is likely and would signal an advance to 7500*.

FTSE 100

* Target: 7100 + ( 7100 – 6700 ) = 7500

Europe on the mend

Bellwether European transport stock Deutsche Post (DHL is a subsidiary) is in a primary up-trend, indicating rising economic activity.

Deutsche Post

Dow Jones Euro Stoxx 50, representing 50 mega-stocks in the Eurozone, broke through 3100 after a lengthy consolidation (or “line” as Dow would have called it). Breakout matches a similar pattern on the DAX and signals a primary advance with a target of 3500*.

Dow Jones Euro Stoxx 50

* Target medium-term: 3100 + ( 3100 – 2700 ) = 3500

The Footsie (FTSE 100) has also been making some headway but is running into resistance at the all-time high of 7100. Declining Twiggs Money Flow, above zero, warns of medium-term selling pressure. Breach of 6700 remains unlikely but would warn of a correction to 6500.

FTSE 100

Footsie resurgence

The Footsie (FTSE 100) respected support at 6700 and a strong weekly candlestick suggests another test of the all-time high at 7100. A Twiggs Money Flow trough above zero would confirm long-term buying pressure. Breach of 6700 is now unlikely but would warn of a correction to 6500.

FTSE 100

Footsie selling pressure

The Footsie (FTSE 100) is again testing support at 6700. Declining Twiggs Money Flow warns of selling pressure. Breach of 6700 is likely and would warn of a correction to 6500.

FTSE 100

Footsie dull rally

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.

FTSE 100

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.

FTSE 100

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.

FTSE 100

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.

FTSE 100

With the pound approaching record lows from 1985, and exports expected to rise, the Footsie finally has a decent chance of breaking clear.

GBPUSD

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.

FTSE 100

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*.

DAX

* 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.

FTSE 100

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.

FTSE 100

* Target calculation: 6500 + ( 6500 – 5900 ) = 7100

UK: Footsie buying pressure

Footsie retracement continues to look promising. Twiggs Money Flow high above zero suggests long-term buying pressure. Respect of support at 6400/6500 would establish a solid base for another attempt at 7000/7100*.

FTSE 100

* Target calculation: 6500 + ( 6500 – 5900 ) = 7100