The Shanghai Composite Index broke primary support at 2650 but rising troughs on the Trend Index indicate buying pressure. Expect retracement to test the new resistance level at 2700.
India’s Nifty is testing primary support at 10,000. Descending peaks on the Trend Index warn of selling pressure. Breach of support at 10,000 would indicate weakness but we need a lower peak to confirm a down-trend.
European stocks are under the pump, with threats from the Asian contagion, Brexit, Italy and recent US volatility. Breach of support at 365 warns of a primary down-trend.
The DAX also breached primary support (11,800). Retracement respected the new resistance level and descending Trend Index peaks warn of growing selling pressure.
France’s CAC-40 index is testing primary support at 5000.
The Footsie is testing primary support at 7000, with descending Trend Index peaks again warning of selling pressure. Breach would signal a primary down-trend.
A down-turn in Europe would add to uncertainty in US markets.

Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.