China Japan threaten further decline

China’s Shanghai Composite Index is testing primary support at 2000. Follow-through below 1990 would signal a decline to 1850*. Reversal of 21-day Twiggs Money Flow below zero would signal medium-term selling pressure. Respect of primary support at 2000, however, would suggest another rally to 2150.

Shanghai Composite Index

* Long-term target calculation: 2000 – ( 2150 – 2000 ) = 1850

Japan’s Nikkei 225 is testing primary support at 14000. 21-Day Twiggs Money Flow below zero indicates medium-term selling pressure. Follow-through below 13900 would confirm a primary down-trend. Respect of primary support is unlikely, but would indicate a rally to 15000.

Nikkei 225

* Target calculation: 14000 – ( 15000 – 14000 ) = 13000