Japan’s Nikkei 225 Index broke support at 8600, signaling a down-swing to test the 2009 low of 7000*. 13-Week Twiggs Money Flow respect of the zero line warns of selling pressure.
* Target calculation: 8600 – ( 10200 – 8600 ) = 7000
South Korea’s Seoul Composite Index fared better, consolidating between 1700 and 1900. Failure of support is more likely (this is a bear market) and would offer a target of 1500*.
* Target calculation: 1700 – ( 1900 – 1700 ) = 1500