Dow Jones HongKong Index reversed below 400, warning of another down-swing. The secondary trendline and declining 63-day Momentum indicate that the sell-off is accelerating.
* Target calculation: 400 – ( 450 – 400 ) = 350
Weekly chart of the Shanghai Composite Index shows a primary down-swing to test support at 2300*. Reversal of 13-week Twiggs Money Flow below zero would warn of rising selling pressure. Failure of support would test the 2008 low of 1700.
* Target calculation: 2650 – ( 3000 – 2650 ) = 2300
The sell-off in Asian markets will impact on others with a strong mining sector: Australia, Brazil, South Africa and Canada.
“impact others with strong metals sectors”, in what way ?
The mining sector has been supported by strong demand out of Asia. We can already see major resources markets weakening in expectation of a down-turn.