Category: Stock Markets

India’s Sensex broke support at 18500, warning of another correction. Troughs above zero on 13-week Twiggs Money Flow indicate long-term buying pressure; so the correction is likely to be mild. Respect of 18000 would suggest a strong primary up-trend, with an initial target of 20000*.

* Target calculation: 19 + ( 19 – 18 ) = 20

Singapore’s Straits Times Index broke support at 3000, warning of a correction. Expect support at the lower trend channel. Oscillation of 63-day Twiggs Momentum around zero would reflect a ranging market.

* Target calculation: 3000 + ( 3000 – 2700 ) = 3300

China’s Shanghai Composite Index is testing primary support at 2000. Breakout would offer a target of 1850*. Reversal of 13-week Twiggs Money Flow below zero warns of selling pressure. Recovery above 2150 is unlikely but would complete a double bottom reversal.

* Target calculation: 2000 – ( 2150 – 2000 ) = 1850

The Hang Seng Index is undergoing a correction. Breach of 21000 would indicate a test of 20000 and the rising trendline. Falling 13-week Twiggs Money Flow indicates medium-term selling pressure but the long-term picture remains bullish with, most likely, another trough above zero. Breakout above 22000 is unlikely at present but would signal an advance to 24000*.

* Target calculation: 22 + ( 22 – 20 ) = 24

Japan’s Nikkei 225 rallied to test resistance at 9200/9300. Rising 13-week Twiggs Money Flow indicates medium-term buying pressure. Breakout above 9300 would test 10200. Respect of resistance is unlikely but would suggest another test of primary support at 8200.

* Target calculation: 9200 + ( 9200 – 8200 ) = 10200

South Korea’s Seoul Composite Index found support at 1860; recovery above 1900 would suggest another test of 2000. A 13-week Twiggs Money Flow trough above zero would indicate long-term buying pressure. Recovery above 2000 would signal another primary advance.

India’s Sensex continues to hold above 18500, suggesting a healthy up-trend. Rising troughs above zero on 13-week Twiggs Money Flow indicate buying pressure. Breakout above 19000 would signal an advance to 21000*.

* Target calculation: 18.5 + ( 18.5 – 16.0 ) = 21.0

Singapore’s Straits Times Index continues to test support at 3000. Breach of 2950 would test the lower trend channel, while breakout above 3100 would indicate an advance to 3300*. Oscillation of 63-day Twiggs Momentum around zero would reflect a ranging market.

* Target calculation: 3000 + ( 3000 – 2700 ) = 3300

Japan’s Nikkei 225 is headed for another test of medium-term support at 8450 after latest economic numbers warn of a contraction. Failure would test primary support at 8200. Oscillation of 13-week Twiggs Money Flow largely below zero indicates selling pressure. Breach of 8200 would signal a decline to 7200*.

* Target calculation: 8200 – ( 9200 – 8200 ) = 7200

South Korea’s Seoul Composite Index is testing medium-term support at 1880 but rising 13-week Twiggs Money Flow reflects buying pressure. Recovery above 1960 would test this year’s high at 2060.

China’s Dow Jones Shanghai Index is testing primary support at 250. Breakout would offer a target of 225*. Oscillation of 63-day Twiggs Momentum below zero reflects a primary down-trend.

* Target calculation: 250 – ( 275 – 250 ) = 225

Rising 13-week Twiggs Money Flow above zero indicates strong buying pressure on the Hang Seng Index. Breakout above 22000 would signal an advance to 24000*. A test of the rising trendline is still a possibility, but a correction that respects support at 20000 would still reflect a healthy up-trend.

* Target calculation: 22 + ( 22 – 20 ) = 24