Japan is surging ahead, with the Nikkei 225 index headed for a test of 20000* after its breakout above 17500 four weeks ago.
* Target medium-term: 17500 + ( 17500 – 15000 ) = 20000
India’s Sensex found support at 26000, but narrow consolidation and declining Twiggs Money Flow both warn of selling pressure. Breach of 26000 would indicate another decline, with a target of 23000*.
* Target medium-term: 26000 – ( 29000 – 26000 ) = 23000
Shanghai Composite Index is undergoing another correction. Respect of support at 3100 would indicate a healthy up-trend, while breach of 3000 would warn of a reversal. Declining Twiggs Money Flow indicates medium-term selling pressure.
* Target medium-term: 3100 + ( 3100 – 2800 ) = 3400
Sharply falling Money Flow warns of strong selling pressure on Hong Kong’s Hang Seng Index. Breach of support at 22000 would signal a primary down-trend with an initial decline to 20000.
