Australia’s ASX 200 index continues to range between 3850 and 4350. Declining 21-day Twiggs Money Flow reflects medium-term selling pressure, but the long-term rise reflects buying support. Failure of support at 4000 would suggest another test of 3850, but only breakout from the range will offer a clear long-term signal.
China’s Shanghai Composite index respected resistance at 2300, suggesting a decline to 2000*. Deep negative values on 63-day Twiggs Momentum are evidence of a strong primary down-trend.
* Target calculation: 2150 – ( 2300 – 2150 ) = 2000
India’s Nifty Index is headed for a test of the upper border of its downward trend channel at 5200. 63-Day Twiggs Momentum holding below zero continues to indicate a strong primary down-trend.
* Target calculation: 5600 + ( 6600 – 5600 ) = 5100
Japan’s Nikkei 225 Index fell sharply Monday to test short-term support at 8360. 13-Week Twiggs Money Flow below zero indicates selling pressure. Breakout below 8200 would warn of another primary decline, with a target of 7400*.
* Target calculation: 8200 – ( 9000 – 8200 ) = 7400