Hong Kong’s Hang Seng Index retreated Wednesday in response to a sharp fall in Shanghai. Bearish divergence on 21-day Twiggs Money Flow warns of a correction, but as long as the lower trend channel at 20,000 is respected the primary up-trend remains intact.
* Target calculation: 20000 + ( 20000 – 17500 ) = 22500
Dow Jones Shanghai Index fell sharply to test support at 295. Failure of support would warn of a correction.
Shanghai Composite Index shows a similar fall. Follow-through below 2380 would signal a correction to primary support at 2150.
