China’s Shanghai Composite Index broke support at 2300, suggesting continuation of the primary down-trend. Failure of primary support at 2150 would confirm the signal, offering a target of 1800*. A 63-day Twiggs Momentum peak below zero indicates continuation of the primary down-trend.
* Target calculation: 2150 – ( 2500 – 2150 ) = 1800
Hong Kong’s Hang Seng Index, however, is correcting to test medium-term support at 20000. Recovery of 63-day Twiggs Momentum above zero indicates a primary up-trend. Respect of the rising trendline would confirm, offering an initial target of 23000*.
* Target calculation: 21500 + ( 21500 – 20000 ) = 23000