Footsie breaks 7000
By Colin Twiggs
April 10th, 2015 11:30 a.m. AET (9:30 p.m. EDT)
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London's FTSE 100 broke long-term resistance at its 1999 high, closing the week above 7000 and signaling a primary advance. Expect retracement to test the new support level, but the long-term target is 8000*.
* Target calculation: 7000 + ( 7000 - 6000 ) = 8000
Global stocks, generally, recovered from recent weakness and appear set for another advance.
The S&P 500 recovered above 2100, suggesting a fresh advance. Foolow-through above 2120 would confirm, offering a target of 2200*. A 21-day Twiggs Money Flow trough above zero would reflect long-term buying pressure. Breach of support at 2040/2050 is unlikely, but would test primary support at 1980/2000.
* Target calculation: 2120 + ( 2120 - 2040 ) = 2200
Declining CBOE Volatility Index (VIX) indicates low risk typical of a bull market.
Bellwether transport stock Fedex rallied off primary support at 164. A 13-week Twiggs Money Flow trough at zero suggests continuation of the primary up-trend; a good sign for the economy.
Europe
Germany's DAX followed through above 12200, offering a medium-term target of 12800*. Rising 13-week Twiggs Money Flow indicates long-term buying pressure. Reversal below 12000 is unlikely.
* Target calculation: 12200 + ( 12200 - 11600 ) = 12800
The Footsie built a solid base of support, with two short corrections, for its breakout above 7000. 13-Week Twiggs Money Flow high above zero indicates long-term buying pressure. Expect retracement to test the new support level, but reversal below 6950/7000 is unlikely.
* Target calculation: 7000 + ( 7000 - 6000 ) = 8000
Asia
China's Shanghai Composite Index continues its primary advance, breaking resistance at 4000. An up-turn in the Harpex container shipping index suggests an increase in international trade. Rising 13-week Twiggs Money Flow indicates long-term buying pressure.
* Target calculation: 3400 + ( 3400 - 2400 ) = 4400
Japan's Nikkei 225 Index is testing resistance at 20000. Rising 13-week Twiggs Momentum indicates long-term buying pressure. Breach of support at 19000 is unlikely. Breakout above 20000 would offer a long-term target of 22000*.
* Target calculation: 20000 + ( 20000 - 18000 ) = 22000
India's Sensex recovery above 28500 indicates the correction is over. Expect another test of resistance at 30000. Recovery of 13-week Twiggs Money Flow above zero suggests continuation of the up-trend. Breakout above 30000 would offer a target of 33000. Breach of primary support at 26500/27000 is now unlikely.
Australia
The ASX 200 is testing resistance at 6000, the upper border of a bullish ascending triangle. Breakout above 6000 would signal an advance to 6250*. Rising 13-week Twiggs Money Flow indicates long-term buying pressure. Reversal below 5750 is unlikely, but would warn of a correction to 5500.
* Target calculation: 6000 + ( 6000 - 5750 ) = 6250
The greatest deception men suffer is from their own opinions.
~ Leonardo da Vinci
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