Resources markets are recovering, with Canada’s TSX 60 index testing resistance at 715 after breaching the descending trendline. Breakout would complete a higher trough, signaling a primary up-trend. Target for the initial advance would be 800*. Rising 13-week Twiggs Money Flow indicates buying pressure.
* Target calculation: 720 + ( 720 – 640 ) = 800
Brazil’s Bovespa broke through 60000, signaling a primary up-trend with an initial target of 65000*.
* Target calculation: 60 + ( 60 – 55 ) = 65
South Africa’s JSE Overall Index broke clear of 33000, signaling a primary up-trend. Bullish divergence on 13-week Twiggs Money Flow strengthens the signal. Initial target for the advance is 35000*, with a long-term mark of 37000.
* Target calculation: 33 + ( 33 – 31 ) = 35