China’s Shanghai Composite Index broke support at 2250, signaling resumption of the primary down-trend. Declining 63-day Twiggs Momentum (below zero) strengthens the signal.
* Target calculation: 2250 – ( 2500 – 2250 ) = 2000
Wait for a break below 880 on the Shenzhen Composite Index to confirm the Shanghai signal. Reversal of 13-week Twiggs Money Flow below zero would indicate selling pressure.
Hong Kong’s Hang Seng Index respected resistance at 20000. Reversal below 18000 would indicate a decline to 16000*. A peak below zero on 63-day Twiggs Momentum would strengthen the bear signal.
* Target calculation: 18000 – ( 20000 – 18000 ) = 16000
Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
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.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.