Around the markets: Hong Kong & India bullish

Canada’s TSX 60 continues to test resistance at the former primary support level of 900. Bearish divergence on Twiggs Money Flow warns of strong selling pressure. Decline below 880 would confirm a primary down-trend, with an initial target of 865*.

TSX 60 Index

* Target calculation: 900 – ( 935 – 900 ) = 865

The Footsie recovered above 7400 but bearish divergence on Twiggs Money Flow warns of long-term selling pressure. Another test of primary support at 7100 remains likely.

FTSE 100 Index

European stocks are taking a beating, with the Dow Jones Euro Stoxx 50 Index testing support at 3400. Sharp decline on Twiggs Money Flow warns of selling pressure. Breach of 3400 would warn of a test of 3200.

DJ Euro Stoxx 50 Index

* Target calculation: 3650 – ( 3650 – 3450 ) = 3850

India’s Sensex remains in a bull market.

BSE Sensex

* Target calculation: 29000 + ( 29000 – 26000 ) = 32000

As does Hong Kong’s Hang Seng Index.

Hang Seng Index

* Target calculation: 24000 – ( 24000 – 21500 ) = 26500

While China’s Shanghai Composite index ranges between 3000 and 3300. Government interference remains a concern.

Shanghai Composite Index

Round the world: India & Hong Kong advance, Canada falters

Canada’s TSX 60 retraced to test resistance at the former primary support level of 900. Respect is likely and would signal a bear market. Decline of Twiggs Money Flow/Trend Index below zero would strengthen the bear signal. Medium-term target for the decline is 865*.

TSX 60 Index

* Target calculation: 900 – ( 935 – 900 ) = 865

The Footsie is losing momentum, with penetration of successive trendlines and declining Twiggs Trend Index. A test of primary support at 7100 is likely.

FTSE 100 Index

Dow Jones Euro Stoxx 50 Index, representing the 50 largest stocks in the Euro Zone, found support above 3400. Penetration of the declining trendline would indicate the correction is over and suggest the start of another advance — confirmed if the index breaks its recent (May 2017) high.

DJ Euro Stoxx 50 Index

* Target calculation: 3650 – ( 3650 – 3450 ) = 3850

It’s full steam ahead for India’s Sensex. Trend Index troughs above zero indicate strong buying pressure. Expect some profit-taking at the target of 32000* but any correction is likely to be shallow as the bull market gathers momentum.

BSE Sensex

* Target calculation: 29000 + ( 29000 – 26000 ) = 32000

Hong Kong’s Hang Seng Index has also reached its target of 26500. Again Trend Index troughs above zero indicate solid buying pressure.

Hang Seng Index

* Target calculation: 24000 – ( 24000 – 21500 ) = 26500

China’s Shanghai Composite index is also rallying but I remain wary of government intervention.

Shanghai Composite Index

India: Sensex bullish

Narrow consolidation around 31000 is a bullish sign for India’s Sensex. Breakout above 31500 would signal a fresh advance. Twiggs Trend Index and Twiggs Money Flow both indicate healthy LT buying pressure. Target for an advance is 33000*.

BSE Sensex

* Target: 31500 + ( 31500 – 30000 ) = 33000

India: Sensex tests support

India’s Sensex continues to test medium-term support at 31000. Bearish divergence on Twiggs Money Flow indicates medium-term selling pressure. Respect of support would offer a target of 32000*. Completion of a second narrow consolidation, after the first between 29000 and 30000, would signal a strong bull market. Breach of support, however, would warn of a correction to 30000.

BSE Sensex

* Target: 29000 + ( 29000 – 26000 ) = 32000

India’s Sensex consolidates

India’s Sensex is consolidating above its new (medium-term) support level at 31000. Bearish divergence on Twiggs Money Flow indicates medium-term selling pressure. Target for the advance is 32000* but further testing of the new support level is likely.

BSE Sensex

* Target: 29000 + ( 29000 – 26000 ) = 32000

India: Sensex advance

India’s Sensex continues to advance, breaking resistance at 31000. Rising Twiggs Money Flow indicates long-term buying pressure. Target for the advance is 32000* but expect retracement to first test the new support level.

BSE Sensex

* Target: 29000 + ( 29000 – 26000 ) = 32000

India: Sensex breakout

India’s Sensex advanced to 31000 having broken long-term resistance at 30000. Target for the advance is 32000* but expect retracement to first test the new support level. Rising Twiggs Money Flow indicates long-term buying pressure.

BSE Sensex

* Target: 29000 + ( 29000 – 26000 ) = 32000

India: Sensex tall shadow

A tall shadow suggests the Sensex is also likely to retrace, to test its new support level at 30000. Respect would confirm the primary advance. Declining Twiggs Money Flow indicates medium-term selling pressure but the long-term signal remains bullish. Target for the advance is 32000*.

BSE Sensex

* Target: 29000 + ( 29000 – 26000 ) = 32000

India: Sensex breakout

The Sensex closed above resistance at 30000, signaling a fresh primary advance. Target for the advance is 32000*.

BSE Sensex

* Target: 29000 + ( 29000 – 26000 ) = 32000

China tests support while India strengthens

Shanghai’s Composite Index is testing support at 3100. Twiggs Money Flow recovered above zero but buying pressure remains weak. Breach of 3100 would warn of a primary down-trend.

Shanghai Composite Index

* Target medium-term: May 2016 low of 2800

Hong Kong is faring better, with the Hang Seng index recovering above 24000 to signal a fresh advance.

Hang Seng Index

India’s Sensex is testing major resistance at 30000. Rising Twiggs Money Flow indicates medium-term buying pressure. Breakout is likely and would offer a target of 32000*.

Sensex Index

* Target medium-term: 29000 + ( 29000 – 26000 ) = 32000