Japan’s Nikkei 225 index is headed for another test of long-term support at 8000/8200 on the monthly chart. The latest peak below zero on 13-week Twiggs Money Flow warns of strong selling pressure. Failure of support would signal another test of the 2008/2009 lows at 7000.
China’s Shanghai Composite Index is testing its 2011 low at 2150 on the weekly chart. Failure would indicate a decline to 1800*. 63-Day Twiggs Momentum below zero continues to warn of a primary down-trend. Recovery above 2250 remains unlikely, but would suggest another rally to 2500.
* Target calculation: 2150 – ( 2500 – 2150 ) = 1800
India’s Sensex is retracing to test support on the weekly chart. Respect of 17000 would indicate a rally to 18500, but 63-day Twiggs Momentum oscillating in a narrow range around zero suggests a ranging market and another test of primary support at 15800/16000 remains as likely.
Singapore’s Straits Times Index is testing resistance at 3040. Recovery of 63-day Twiggs Momentum above zero suggests that the primary up-trend is intact, and breakout would signal an advance to 3300*, but a ranging market is more likely.
* Target calculation: 3000 + ( 3000 – 2700 ) = 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.
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