![\"Nikkei](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-04-07-n225.png?resize=525%2C363&ssl=1\" "\\"Nikkei")
<\/p>\nThe Asia-Pacific region reacted to Friday’s sell-off in US markets, with the Nikkei and Hang Seng currently down 1.5% and 1.2% respectively. The Shanghai exchange is closed for a public holiday, while India’s DJ15 is down 0.67%. The ASX 200, however, rallied towards the close, losing only 0.17%.<\/p>\n
The monthly chart of Japan’s Nikkei 225 continues to display a large bearish divergence on 13-week Twiggs Money Flow, warning of long-term selling pressure. Reversal below 14000 would signal a primary down-trend. Recovery above 15000 is as likely, however, and would indicate another advance.<\/p>\n
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* Target calculation: 15000 + ( 15000 – 14000 ) = 16000<\/p>\n
A monthly chart shows the Shanghai Composite Index on the flight path for a soft landing. Successive falls over the past 5 years have all exceeded the previous trough by roughly 200 points and this seems unlikely to change for the foreseeable future. The problem with a managed descent is that it is likely to endure for a lot longer than a short sharp crash. Breach of primary support at 1950 would therefore offer a target of 1800.<\/p>\n
![\"Shanghai](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-04-07-ssec.png?resize=525%2C363&ssl=1\" "\\"Shanghai")
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Hong Kong’s Hang Seng Index on the other hand displays a large bullish ascending triangle. A 13-week Twiggs Money Flow trough at zero indicates buying pressure Breakout above 24000 would signal a primary advance. Reversal below the rising trendline is unlikely, but would warn of reversal to a primary down-trend.<\/p>\n
![\"Hang](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-04-07-hsi.png?resize=525%2C363&ssl=1\" "\\"Hang")
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* Long-term target calculation: 24000 + ( 24000 – 17000 ) = 31000<\/p>\n
India’s Sensex encountered resistance at 22500 and is likely to retrace to test 22000. Respect would signal an advance to 23000*. Bearish divergence on 13-week Twiggs Money Flow, however, warns of short\/medium-term selling pressure. Reversal below 21500 is unlikely, but would indicate another correction.<\/p>\n
![\"Sensex\"](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-04-07-bse.png?resize=525%2C363&ssl=1\" "\\"Sensex\\"")
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* Target calculation: 21500 + ( 21500 – 20000 ) = 23000<\/p>\n
The ASX 200 proved surprisingly resilient, rallying toward the close. Rising 21-day Twiggs Money Flow indicates medium-term buying pressure, but expect strong resistance at 5450\/5460. Breakout above 5450\/5460 would signal an advance to 5600*. Respect of resistance or a false break, however, would warn of another test of support at 5300 and possibly a stronger correction. Primary support at 5050 does not at this stage appear threatened and the index remains in an up-trend.<\/p>\n
![\"ASX](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-04-07-xjo.png?resize=525%2C363&ssl=1\" "\\"ASX")
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* Target calculation: 5450 + ( 5450 – 5300 ) = 5600<\/p>\n
ASX 200 VIX below 12 continues to indicate low risk typical of a bull market.<\/p>\n
![\"ASX](\"https:\/\/i0.wp.com\/www.incrediblecharts.com\/images\/2014\/2014-04-07-xvi.png?resize=525%2C363&ssl=1\" "\\"ASX")
<\/p>\n","protected":false},"excerpt":{"rendered":"
The Asia-Pacific region reacted to Friday’s sell-off in US markets, with the Nikkei and Hang Seng currently down 1.5% and 1.2% respectively. The Shanghai exchange is closed for a public holiday, while India’s DJ15 is down 0.67%. The ASX 200, however, rallied towards the close, losing only 0.17%. The monthly chart of Japan’s Nikkei 225 … <\/p>\n