India’s Sensex retreated from its 2007 and 2010 highs at 21000 and is testing support at 20500. Respect would signal a primary advance with a target of 24000*. Rising 13-week Twiggs Money Flow suggests medium-term buying pressure. Reversal below 20500 is less likely, but would warn of a correction to 19500 and possibly primary support at 18000.
* Target calculation: 21000 + ( 21000 – 18000 ) = 24000
Dow Jones Japan index is proving resilient, headed for another test of resistance at 82. Breakout would signal an advance to 90*. 13-Week Twiggs Momentum is declining, but has so far respected the zero line, suggesting the primary up-trend is intact. Completion of a trough above zero would strengthen the signal. Reversal below the rising trendline is unlikely but would warn of another test of primary support at 74.
* Target calculation: 82 + ( 82 – 74 ) = 90
Dow Jones Shanghai Index is rallying to test resistance at 282 after finding support at 270. Respect of resistance is likely and breach of 270 would signal a test of primary support at 245/250. Twiggs Momentum oscillating around the zero line indicates uncertainty.
The ASX 200 is consolidating in a narrow range below resistance at 5450 — a bullish sign. Upward breakout would signal an advance to 5600*. Bearish divergence on 13-week Twiggs Money Flow, however, continues to warn of selling pressure. Reversal below 5300, penetrating the rising trendline, would signal a correction.
* Target calculation: 5450 + ( 5450 – 5300 ) = 5600