Japan’s Nikkei 225 is testing its new support level around 15000. Declining 13-week Twiggs Money Flow warns of long-term selling pressure. Respect of support would confirm a primary advance, with a long-term target of 17500*. But breach of the rising trendline is as likely, and would warn of a correction to the base of the formation at 12500/13000.
* Target calculation: 15000 + ( 15000 – 12500 ) = 17500
India’s Sensex made a false break through resistance at 21200, warning of selling pressure. Bearish divergence on 13-week Twiggs Money Flow also indicates medium-term selling pressure. Retreat below support at 20200 would warn of a test of primary support at 18000. Recovery above 21200 is unlikely at present, but would confirm a primary advance to 24000*.
* Target calculation: 21000 + ( 21000 – 18000 ) = 24000
For the Nikkei, the tax rate for Japanese for dividends and capital gains will change from 10% at the end of the year to 20%. I wonder how much of the selling has to do with that, or is it foreign buyers/sellers influencing the index?