Australia’s ASX 200 index fell sharply Monday. Bearish divergence on 13-week Twiggs Money Flow warns of strong selling pressure. Failure of medium-term support at 4000 is likely, while breach of the primary level at 3850 would signal a decline to 3350*.
* Target calculation: 3850 – (4350 – 3850 ) = 3350
South Korea shows a similar pattern, with the Dow Jones index testing medium-term support at 380 following bearish divergence on 13-week Twiggs Money Flow. Breach of primary support at 350 would signal a primary decline to 280*.
* Target calculation: 350 – ( 420 – 350 ) = 280