Japan’s Nikkei 225 index is testing medium-term resistance at 9000/9100. Breakout would test 10000. Troughs below zero on 13-week Twiggs Money Flow indicate weakness.
China’s Shanghai Composite Index is retracing to test resistance at 2250. Respect would confirm a primary down-trend — already signaled by 63-day Twiggs Momentum below zero.
* Target calculation: 2250 – ( 2500 – 2250 ) = 2000
Wait for confirmation from a Shenzhen Composite index reversal below 880/900. A 63-day Twiggs Momentum peak below zero would strengthen the signal.
Singapore Straits Times Index broke through medium-term resistance at 2900, headed for a test of 3050. Recovery of 63-day Twiggs Momentum above zero suggests that the primary up-trend is intact.
* Target calculation: 3050 + ( 3050 – 2900 ) = 3200
India’s Sensex displays a healthy bullish divergence on 13-week Twiggs Money Flow, indicating reversal to a primary up-trend. Breakout above 17000 suggests another test of 18500. And breach of 18500 would confirm the primary up-trend.
* Target calculation: 18500 + ( 18500 – 16000 ) = 21000
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.