The Hang Seng dropped 3 percent Monday, testing medium-term support at 19000. Failure of support would warn of a decline to 16000*. 63-Day Twiggs Momentum below zero already suggests a primary down-trend. Breach of primary support at 18000 would confirm.
* Target calculation: 18000 – ( 20000 – 18000 ) = 16000
With the Shanghai Composite in a primary down-trend, all we need is for the Shenzhen Index to break support at 880 to complete the trifecta. A peak below zero on 63-day Twiggs Momentum already warns of a primary down-trend.
* Target calculation: 900 – ( 1000 – 900 ) = 800