The Shanghai Composite index broke primary support at 2300 Monday, signaling a decline to 2100*. Follow-through on Tuesday would strengthen the signal. The sharp fall on 13-week Twiggs Money Flow warns of strong selling pressure.
* Target calculation: 2300 – ( 2500 – 2300 ) = 2100
Hong Kong’s Hang Seng Index held above 18500 Monday, but another test of medium-term support at 17500 is likely.
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