![\"S&P](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-08-22-spx.png?w=525&ssl=1\")
<\/p>\nThe S&P 500 Index broke medium-term support at 1650 and is headed for a test of the rising trendline. Respect would indicate the primary up-trend is intact, but bearish divergence on 13-week Twiggs Money Flow warns of selling pressure. This is also evidenced by the marginal new high in August. A test of primary support at 1560 is likely. Breach would offer a target of 1400*.<\/p>\n
<\/p>\n
* Target calculation: 1550 – ( 1700 – 1550 ) = 1400<\/p>\n
Dow Jones Europe Index also displays marginal new highs in May and August. Penetration of the rising trendline indicates the up-trend is losing momentum — also indicated by bearish divergence on 13-week Twiggs Momentum. Reversal below support at 290 would strengthen the warning, but only failure of support at 270 would signal a trend reversal.<\/p>\n
![\"DJ](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-08-22-e1dow.png?w=525&ssl=1\")
<\/p>\n
China’s Shanghai Composite Index ran into strong resistance at 2100. Declining 13-week Twiggs Money Flow (below zero) warns of selling pressure. Reversal below 2050 would indicate another test of primary support at 1950, suggesting a decline to 1800*. Breakout above 2200 and the descending trendline is unlikely, but would signal that a bottom has formed.<\/p>\n
![\"Shanghai](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-08-22-ssec.png?w=525&ssl=1\")
<\/p>\n
Japan’s Nikkei 225 broke medium-term support at 13500. Follow-through below 13250 would indicate a correction to primary support at 12500. Penetration of the rising trendline suggests that the primary up-trend is losing momentum. Earlier bearish divergence on 13-week Twiggs Money Flow also warns of a reversal. Recovery above the declining trendline is less likely, but would indicate the correction has ended.<\/p>\n
![\"Nikkei](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-08-22-n225.png?w=525&ssl=1\")
<\/p>\n
India’s Sensex broke primary support at 18500, following through below 18000 to remove any doubt. The primary trend has reversed after a triple top and now offers a target of 16500*. Declining 13-week Twiggs Money Flow confirms selling pressure. Recovery above 18500 is unlikely, but would warn of a bear trap.<\/p>\n
![\"BSE](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-08-22-bse.png?w=525&ssl=1\")
<\/p>\n
* Target calculation: 18500 – ( 20500 – 18500 ) = 16500<\/p>\n
The ASX 200 is consolidating in a broadening top around the 2010\/2011 high of 5000. Correction to 4900 would be quite acceptable, garnering support for an advance to the upper border, but breach of 4900 would indicate a failed swing, warning of reversal to a primary down-trend. Failure of primary support at 4650 would confirm. Bearish divergence on 13-week Twiggs Money Flow indicates selling pressure; strengthened if the indicator reverses below zero. Respect of support at 5000 is less likely, despite the long tail on today’s candle, but would offer a target of 5300*.<\/p>\n
![\"ASX](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2013\/2013-08-22-asx.png?w=525&ssl=1\")
<\/p>\n
* Target calculation: 5150 + ( 5150 – 5000 ) = 5300<\/p>\n","protected":false},"excerpt":{"rendered":"
The S&P 500 Index broke medium-term support at 1650 and is headed for a test of the rising trendline. Respect would indicate the primary up-trend is intact, but bearish divergence on 13-week Twiggs Money Flow warns of selling pressure. This is also evidenced by the marginal new high in August. A test of primary support … <\/p>\n