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 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.