China’s Shanghai Composite index has been edging lower since breaking support at 2400. 63-Day Twiggs Momentum, declining below zero, confirms a primary down-trend. Expect a test of the 2008 low at 1700 in the months ahead.
* Target calculation: 2400 – ( 3200 – 2400 ) = 1600
India’s Sensex Index broke support at 16000 but then retraced to test the new resistance level. An encouraging bullish divergence on 13-week Twiggs Money Flow shows buying pressure. Breakout above 16000 would indicate a rally to 18000. Respect of resistance, however, would confirm the down-swing to 14000*.
* Target calculation: 16 – ( 18 – 16 ) = 14
Singapore’s Straits Times Index follows a similar course to India. Recovery above 2900 would signal a (primary trend) reversal.
Hong Kong’s Hang Seng Index faces similar resistance at 20000. Respect would indicate another test of 16000, while breakout would signal a reversal.
The weekly chart shows Japan’s Nikkei 225 index on a similar path to Shanghai — headed for a test of its 2008/9 lows. Failure of medium-term support at 8200 would strengthen the signal. 13-Week Twiggs Money Flow below zero warns of selling pressure.
* Target calculation: 9 – ( 11 – 9 ) = 7
South Korea’s Seoul Composite index is testing resistance at 1920 but bearish divergence on 13-week Twiggs Money Flow warns of selling pressure. Reversal below 1800 would suggest another test of support at 1650. Upward breakout is unlikely but would indicate a (primary trend) reversal.
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