Tag: Nikkei 225 Index

The CCP is in a cleft stick over the protests in Hong Kong. Either they escalate and clear protestors with a massive show of force — which risks further escalation — or they wait patiently and let the protest run its course. Their problem is that there are more than 800 million Chinese citizens watching, who will take this as a precedent for future demonstrations in China. The shadow of Tiananmen Square will be replaced by the outcome of the current protests, whatever that is.

Perhaps most incredible photo of #HongKong you will ever see: protests last night via @hkdemonow pic.twitter.com/hSuYMXHTCF

— Jon Williams (@WilliamsJon) October 1, 2014

Hong Kong’s Hang Seng Index broke support at 24000, signaling a correction to 21000/22000. Reversal of 13-week Twiggs Money Flow below zero would warn of a bear market. Breach of support at 21000 would indicate a primary down-trend.

China’s Shanghai Composite Index, however, broke resistance at 2340/2350, indicating an advance to 2440/2450. Rising 13-week Twiggs Money Flow continues to indicate medium-term buying pressure. I would advocate caution, given the situation in Hong Kong and a negative outlook for the economy.

* Target calculation: 2250 + ( 2250 – 2000 ) = 2500

India’s Sensex is testing support at 26000. Bearish divergence on 13-week Twiggs Money Flow continues to warn of long-term selling pressure, but another trough above zero would suggest that buyers are regaining control. Failure of support would signal a correction to the primary trendline — around 25000 — while respect would indicate an advance to 28000*.

* Target calculation: 27000 + ( 27000 – 26000 ) = 28000

Japan’s Nikkei 225 index retraced to test support at 16000, but respect of this level would be a bullish sign, suggesting a breakout above its 2013 high of 16300 with a long-term target of 18000*. Reversal below 16000 is unlikely, but would warn of a correction. Another 13-week Twiggs Money Flow would signal long-term buying pressure.

* Target calculation: 16000 + ( 16000 – 14000 ) = 18000

Hong Kong’s Hang Seng Index is testing support at 24000. Breach of the rising trendline warns of a correction. 13-Week Twiggs Money Flow holding above zero continues to indicate long-term buying pressure. Respect of support at 24000 would suggest another advance; confirmed if there is follow-through above 25000. Breach of support, however, would also warn of a correction — to the primary trendline around 22000.

* Long-term target calculation: 24000 + ( 24000 – 21000 ) = 27000

China’s Shanghai Composite Index is consolidating below resistance at its 2013 high. Rising 13-week Twiggs Money Flow continues to indicate medium-term buying pressure. Breakout above 2350 would signal a fresh advance, while reversal below 2250 would warn of a correction.

* Target calculation: 2250 + ( 2250 – 2000 ) = 2500

India’s Sensex recovered above 27000, suggesting an advance to 28000*. Rising 13-week Twiggs Money Flow suggests medium-term buying pressure. Breach of the secondary rising trendline is unlikely, but would warn of a correction.

* Target calculation: 27000 + ( 27000 – 26000 ) = 28000

Japan’s Nikkei 225 index is testing resistance at its 2013 high of 16300. Rising 13-week Twiggs Money Flow indicates medium-term buying pressure. Breakout above 16300 would offer a long-term target of 18000*. Reversal below 16000 is unlikely, but would warn of a correction.

* Target calculation: 16000 + ( 16000 – 14000 ) = 18000

Hong Kong’s Hang Seng Index continues to encounter resistance at 25000, but respect of support at 24000 and rising 13-week Twiggs Money Flow indicate sustained buying pressure. Breakout would offer a target of 27000*.

* Long-term target calculation: 24000 + ( 24000 – 21000 ) = 27000

China’s Shanghai Composite Index is consolidating after breaking resistance at 2250. Rising 13-week Twiggs Money Flow reflects medium-term buying pressure. The primary trend is up, but expect retracement to test the new support level at 2250.

* Target calculation: 2250 + ( 2250 – 2000 ) = 2500

India’s Sensex has reached its long-term target of 27000*, shown here on a quarterly chart. Bearish divergence on 13-week Twiggs Money Flow continues to warn of long-term selling pressure. Respect of the zero line appears likely and would suggest a further advance, but a fall below zero would warn of a decline to test the rising trendline.

* Target calculation: 21000 + ( 21000 – 15000 ) = 27000

Japan’s Nikkei 225 index continues its advance towards 16300. Rising 13-week Twiggs Money Flow indicates medium-term buying pressure. Reversal below 15500 is unlikely, but would warn of a test of 14800.

Hong Kong’s Hang Seng Index is retracing to test support at 24000. Respect is likely and recovery above 25000 would confirm a primary advance to 27000*. Rising 13-week Twiggs Money Flow signals buying pressure. Failure of support at 24000 is unlikely, but would warn of a correction.

* Long-term target calculation: 24000 + ( 24000 – 21000 ) = 27000

China’s Shanghai Composite Index broke resistance at 2250, confirming a primary up-trend. Rising 13-week Twiggs Money Flow indicates medium-term buying pressure. Expect retracement to test the new support level.

* Target calculation: 2250 + ( 2250 – 2000 ) = 2500

India’s Sensex is testing resistance at the target of 27000*. Completion of a 13-week Twiggs Money Flow trough above zero indicates that buyers have taken control. Expect retracement to test the new support level at 26000. Penetration of the secondary trendline is unlikely, but would warn of a correction to the primary trendline.

* Target calculation: 21000 + ( 21000 – 15000 ) = 27000

Japan’s Nikkei 225 index followed through above 15500, suggesting a test of resistance at 16000/16300. Declining 13-week Twiggs Money Flow continues to warn of medium-term selling pressure, but respect of the zero line would signal that buyers have taken control. Reversal below 15500 is unlikely, but would warn of a test of 14800.

Hong Kong’s Hang Seng Index broke its 2010 high at 25000, confirming a primary advance and offering a target of 27000*. Rising 13-week Twiggs Money Flow signals continued buying pressure. Reversal below 24000 is unlikely, but would warn of a correction to the rising trendline.

* Long-term target calculation: 24000 + ( 24000 – 21000 ) = 27000

China’s Shanghai Composite Index continues to test resistance at 2250. Breakout would confirm a primary up-trend. Rising 13-week Twiggs Money Flow indicates medium-term buying pressure. Reversal below 2150 is unlikely, but would warn of another test of primary support at 1990/2000.

* Target calculation: 2250 + ( 2250 – 2000 ) = 2500

India’s Sensex is retracing to test support at 26000. Respect would confirm the target of 27000*. Declining 13-week Twiggs Money Flow continues to warn of selling pressure. Respect of the zero line would indicate that buyers have taken control, while a fall below zero would warn of a correction. Penetration of the secondary trendline is unlikely, but would indicate a correction to the primary trendline.

* Target calculation: 21000 + ( 21000 – 15000 ) = 27000

Japan’s Nikkei 225 index recovered above 15500, suggesting continuation of the advance. Expect resistance between 16000 and 16300. Declining 13-week Twiggs Money Flow warns of medium-term selling pressure, but respect of the zero line would indicate that buyers have taken control. Reversal below 14800 is unlikely, but would warn of a test of primary support at 14000.

* Target calculation: 16000 + ( 16000 – 14000 ) = 18000