Dow Jones Total Stock Market Index for India closed below support at 1800, warning of another correction, but 63-day Twiggs Momentum holding above zero continues to indicate a primary up-trend. Breakout above 1900 would signal an advance to 2100*.
* Target calculation: 1800 + ( 1800 – 1500 ) = 2100
BSE Sensex Index is testing support at 17000. Downward breakout would indicate another test of primary support at 15000. 13-Week Twiggs Money Flow respect of the zero line, however, would signal strong buying pressure. And recovery above the medium-term (orange) descending trendline would indicate a fresh primary advance, breakout above 18000 confirming the primary up-trend.
* Target calculation: 18 + ( 18 – 15 ) = 21
Singapore Straits Times Index continues to test resistance at 3000. 63-Day Twiggs Momentum holding above zero confirms the primary up-trend. Follow-through above 3050 would signal an advance to 3300*.
* Target calculation: 2900 + ( 2600 – 2500 ) = 3300
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He founded PVT Capital (AFSL number 546090), which provides income and growth strategies to wholesale clients.
Colin also co-founded Incredible Charts and writes the popular Patient Investor newsletter.
Using a top-down approach, Colin identifies macro trends in the global economy and then combines fundamental and technical analysis to evaluate opportunities in sectors that stand to benefit.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.