India’s Sensex is testing primary support at 26500. Breach would signal a primary down-trend, confirming the signals from 13-week Twiggs Momentum & Money Flow, both of which have crossed below zero. Twiggs Momentum has been warning of a reversal with a bearish divergence since late 2014, while Twiggs Money Flow chimed in from March 2015. Breach of support would offer a target of 23000. Recovery above the descending trendline is unlikely, but would suggest another rally.
* Target calculation: 26500 – ( 30000 – 26500 ) = 23000
The S&P/NSE Nifty index tells a similar story, testing primary support at 8000. Breach would offer a target of 7000*.
* Target calculation: 8000 – ( 9000 – 8000 ) = 7000