Hong Kong’s Hang Seng Index is consolidating above 18500 on the weekly chart. Reversal of 13-week Twiggs Money Flow below zero warns of selling pressure, strengthening the bear signal from 63-day Twiggs Momentum. Breach of 18500 would test primary support at 17500 — and breach of 17500 would offer a target of 15000*. Recovery above 20000 remains unlikely but would warn of a bear trap.
* Target calculation: 17500 – ( 20000 – 17500 ) = 15000
Shanghai Composite Index is headed for a test of primary support at 2250; breach would offer a target of 2000*. Reversal of 63-day Twiggs Momentum below zero indicates continuation of the primary down-trend. Recovery above 2500 is unlikely but would signal a primary advance.
* Target calculation: 2250 – ( 2500 – 2250 ) = 2000
If it goes below 2000 Ouch