The Brazilian Bovespa Index broke support at the 2010 low of 58000. The strong primary down-trend brushed aside expected support at 55000, offering a long-term target of 44000*. 13-Week Twiggs Money Flow below zero confirms strong selling pressure.
* Target calculation: 58000 – ( 72000 – 58000 ) = 44000
The South African JSE Overall Index broke through 30000 to indicate a primary down-trend. Expect retracement to test the new resistance level but 13-week Twiggs Money Flow below zero warns of selling pressure. Support at 29000 is not likely to hold and, with the calculated target at 27000*, the next major support level is 26000.
* Target calculation: 30000 – ( 33000 – 30000 ) = 27000