China’s Shanghai Composite Index is testing resistance at 2150. While a large correction — signaled by breakout above 2150 — is not a reliable reversal signal, it does indicate that a bottom is forming. Bullish divergence on 63-day Twiggs Momentum also suggests a reversal. But only a higher trough followed by a new high on the index chart would confirm.
India’s Sensex is consolidating in a narrow range below 19500. Breakout is likely and would indicate an advance to 20000*. Oscillation of 13-week Twiggs Money Flow above zero indicates long-term buying pressure, but bearish divergence warns of medium-term resistance. Reversal below 19000 is unlikely but would warn that the advance is losing momentum.
* Target calculation: 19 + ( 19 – 18 ) = 20
Japan’s Nikkei 225 Index is advancing to resistance at 10000/10200*. Rising 63-day Twiggs Momentum indicates buying pressure; look for a trough above zero to confirm.
* Target calculation: 9200 + ( 9200 – 8200 ) = 10200