Asia falls as selling pressure rises

By Colin Twiggs
May 23rd, 2011 4:00 a.m. ET (6:00 p.m. AET)

These extracts from my trading diary are for educational purposes and should not be interpreted as investment or trading advice. Full terms and conditions can be found at Terms of Use.

The Dow Jones Global Index is testing medium-term support at 260. Failure would confirm a correction, penetration of the long-term trendline also warning that the primary up-trend is weakening.

The Dow is again testing medium-term support between 12400 and 12500; failure would signal a correction. Bearish divergence on 21-day Twiggs Money Flow indicates selling pressure. Recovery above 12900 is unlikely but would indicate an advance to 13200*.

* Target calculation: 12400 + ( 12400 - 11600 ) = 13200

S&P 500

The S&P 500 is testing medium-term support at 1330; failure would confirm a correction. Breach of the rising trendline would also warn that the up-trend is weakening. Bearish divergence on 13-week Twiggs Money Flow indicates continued selling pressure. Recovery above 1350 is most unlikely, but would indicate an advance to 1450*.

* Target calculation: 1350 + ( 1350 - 1250 ) = 1450

Transport

Bellwether stock Fedex continues to range between 85 and 96. Upward breakout would suggest another primary advance, while reversal below 85 would signal a primary reversal. UPS is ranging in a similar fashion; breakout would signal future direction.

Technology

The Nasdaq 100 is testing medium-term support at 2340; breach would signal a correction to primary support at 2200 and the long-term trendline. Bearish divergence on 13-week Twiggs Money Flow continues to indicate strong selling pressure. Recovery above 2400 is unlikely but would suggest an advance to 2600*.

* Target calculation: 2400 + ( 2400 - 2200 ) = 2600

Canada: TSX

TSX Composite Index is one of the few indices looking positive. Breakout above 13700 would confirm a bear trap.

Bullish divergence on $CADOW indicates medium-term buying pressure. Reversal below 450 is unlikely but would confirm a primary reversal.

United Kingdom

The FTSE 100 warns of strong selling pressure with a large bearish divergence on 21-day Twiggs Money Flow. Failure of medium-term support at 5860 would signal a correction to test primary support at 5600.

* Target calculation: 6100 + ( 6100 - 5600 ) = 6600

Germany

The DAX broke short-term support at 7350, warning of a correction; failure of medium-term support at 7200 would confirm. Bearish divergence on 21-day Twiggs Money Flow indicates continued selling pressure.

* Target calculation: 7500 + ( 7500 - 6500 ) = 8500

France

The CAC-40 retreated below zero on 21-day Twiggs Money Flow, warning of selling pressure. Breakout above 4150 is now unlikely, but would signal a primary advance to 4750. Breach of the long-term trendline would warn that the primary trend is losing momentum.

India

The Sensex fell sharply Monday to test support at 18000, 21-day Twiggs Money Flow below zero indicating continued selling pressure. Failure of 18000 would test primary support at 17500.

Singapore

The Straits Times Index retreated to test medium-term support at 3100 Monday. Failure would warn of another test of primary support at 2920.

Japan

The Nikkei 225 displays medium-term selling pressure, with a bearish divergence on 21-day Twiggs Money Flow. Failure of medium-term support at 9400 would warn of a correction to primary support at 8600. The primary trend remains down and intervention by the BOJ is unlikely to change this.

South Korea

The Seoul Composite Index broke through the band of support around 2100 Monday, signaling a correction to the long-term trendline at 2000. Bearish divergence on 13-week Twiggs Money Flow warns of a reversal.

* Target calculation: 2100 + ( 2100 - 1950 ) = 2250

Taiwan

The Dow Jones Taiwan Index retreated below its new support level at 212, warning of weakness. Bearish divergence on 21-day Twiggs Money Flow indicates medium-term selling pressure. Expect another test of primary support at 196.

* Target calculation: 220 + ( 220 - 195 ) = 245

China

The Dow Jones Shanghai Index broke medium-term support at 360 Monday, headed for a test of primary support at 330.

The Shanghai Composite Index broke support at 2850 Monday; signaling a correction to primary support at 2650. Bearish divergence on 21-day Twiggs Money Flow indicates selling pressure.

* Target calculations: 3100 + ( 3100 - 2700 ) = 3500

The Hang Seng Index broke support at 23000 Monday, headed for a test of primary support at 22200.

In the longer term, ASX 200 breach of support at 4500 would signal a primary trend reversal. Penetration of the long-term trendline already shows that the index has lost momentum.

If you do not change direction, you may end up where you are heading.

~ Lao Tzu: Tao-Te Ching

Trading Diary Trading Diary Colin Twiggs My Strategy Disclaimer Incredible Charts Stock Chart Demo What's New About Us Contact Us Terms of Use Terms of Use Market Data Suppliers Terms Privacy Policy Refund Policy	Asia falls as selling pressure rises By Colin Twiggs May 23rd, 2011 4:00 a.m. ET (6:00 p.m. AET) These extracts from my trading diary are for educational purposes and should not be interpreted as investment or trading advice. Full terms and conditions can be found at Terms of Use. The Dow Jones Global Index is testing medium-term support at 260. Failure would confirm a correction, penetration of the long-term trendline also warning that the primary up-trend is weakening. USA Dow Jones Industrial Average The Dow is again testing medium-term support between 12400 and 12500; failure would signal a correction. Bearish divergence on 21-day Twiggs Money Flow indicates selling pressure. Recovery above 12900 is unlikely but would indicate an advance to 13200. Target calculation: 12400 + ( 12400 - 11600 ) = 13200 S&P 500 The S&P 500 is testing medium-term support at 1330; failure would confirm a correction. Breach of the rising trendline would also warn that the up-trend is weakening. Bearish divergence on 13-week Twiggs Money Flow indicates continued selling pressure. Recovery above 1350 is most unlikely, but would indicate an advance to 1450. Target calculation: 1350 + ( 1350 - 1250 ) = 1450 Transport Bellwether stock Fedex continues to range between 85 and 96. Upward breakout would suggest another primary advance, while reversal below 85 would signal a primary reversal. UPS is ranging in a similar fashion; breakout would signal future direction. Technology The Nasdaq 100 is testing medium-term support at 2340; breach would signal a correction to primary support at 2200 and the long-term trendline. Bearish divergence on 13-week Twiggs Money Flow continues to indicate strong selling pressure. Recovery above 2400 is unlikely but would suggest an advance to 2600. Target calculation: 2400 + ( 2400 - 2200 ) = 2600 Canada: TSX TSX Composite Index is one of the few indices looking positive. Breakout above 13700 would confirm a bear trap. Bullish divergence on $CADOW indicates medium-term buying pressure. Reversal below 450 is unlikely but would confirm a primary reversal. United Kingdom The FTSE 100 warns of strong selling pressure with a large bearish divergence on 21-day Twiggs Money Flow. Failure of medium-term support at 5860 would signal a correction to test primary support at 5600. * Target calculation: 6100 + ( 6100 - 5600 ) = 6600 Germany The DAX broke short-term support at 7350, warning of a correction; failure of medium-term support at 7200 would confirm. Bearish divergence on 21-day Twiggs Money Flow indicates continued selling pressure. * Target calculation: 7500 + ( 7500 - 6500 ) = 8500 France The CAC-40 retreated below zero on 21-day Twiggs Money Flow, warning of selling pressure. Breakout above 4150 is now unlikely, but would signal a primary advance to 4750. Breach of the long-term trendline would warn that the primary trend is losing momentum. India The Sensex fell sharply Monday to test support at 18000, 21-day Twiggs Money Flow below zero indicating continued selling pressure. Failure of 18000 would test primary support at 17500. Singapore The Straits Times Index retreated to test medium-term support at 3100 Monday. Failure would warn of another test of primary support at 2920. Japan The Nikkei 225 displays medium-term selling pressure, with a bearish divergence on 21-day Twiggs Money Flow. Failure of medium-term support at 9400 would warn of a correction to primary support at 8600. The primary trend remains down and intervention by the BOJ is unlikely to change this. South Korea The Seoul Composite Index broke through the band of support around 2100 Monday, signaling a correction to the long-term trendline at 2000. Bearish divergence on 13-week Twiggs Money Flow warns of a reversal. * Target calculation: 2100 + ( 2100 - 1950 ) = 2250 Taiwan The Dow Jones Taiwan Index retreated below its new support level at 212, warning of weakness. Bearish divergence on 21-day Twiggs Money Flow indicates medium-term selling pressure. Expect another test of primary support at 196. * Target calculation: 220 + ( 220 - 195 ) = 245 China The Dow Jones Shanghai Index broke medium-term support at 360 Monday, headed for a test of primary support at 330. The Shanghai Composite Index broke support at 2850 Monday; signaling a correction to primary support at 2650. Bearish divergence on 21-day Twiggs Money Flow indicates selling pressure. * Target calculations: 3100 + ( 3100 - 2700 ) = 3500 The Hang Seng Index broke support at 23000 Monday, headed for a test of primary support at 22200. Brazil: Bovespa The Bovespa Index below primary support at 64000 signals a primary decline with a target of 58000. Twiggs Money Flow below zero indicates strong selling pressure. Target calculation: 64000 - ( 70000 - 64000 ) = 58000 South Africa: JSE The JSE Overall Index displays selling pressure on 21-day Twiggs Money Flow, with a bearish divergence and fall below zero. Breach of medium-term support at 31400 would signal a correction to primary support at 30000. * Target calculation: 33000 + ( 33000 - 30000 ) = 36000 New Zealand: NZX The NZ50 remains positive, with rising 21-day Twiggs Money Flow indicating buying pressure. Breach of the rising trendline, however, would warn of a correction; failure of medium-term support at 3425 would confirm. * Target calculation: 3425 + ( 3425 - 3300 ) = 3550 Australia: ASX The All Ordinaries is testing short-term support at 4725; failure would test primary support around 4600. Declining 21-day Twiggs Money Flow indicates medium-term selling pressure. * Target calculation: 5000 + ( 5000 - 4600 ) = 5400 In the longer term, ASX 200 breach of support at 4500 would signal a primary trend reversal. Penetration of the long-term trendline already shows that the index has lost momentum. If you do not change direction, you may end up where you are heading. ~ Lao Tzu: Tao-Te Ching	A+ A− Most Popular Links Colin Twiggs' Trading Diary Free Download Connection Test My Strategy Twiggs Money Flow How to Trade MACD Divergences Time your Exits with ATR Trailing Stops 2 Great Bollinger Band Trading Strategies Moving Averages Candlestick Chart Patterns
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