Asia: India strong, China and Japan weak
By Colin Twiggs
October 3rd, 2012 2:00 a.m. ET (4:00 p.m. AET)
India's Sensex is holding above 18500, confirming the primary up-trend. Rising troughs above zero on 13-week Twiggs Money Flow indicate buying pressure. Follow-through above 19000 would signal an advance to 21000*.
* Target calculation: 18.5 + ( 18.5 - 16.0 ) = 21.0
Singapore's Straits Times Index is testing resistance at 3100. Narrow consolidation indicates buying pressure and breakout above 3100 would signal an advance to 3300*. A 63-day Twiggs Momentum trough above zero would signal a strong primary up-trend.
* Target calculation: 3000 + ( 3000 - 2700 ) = 3300
Japan's Nikkei 225 is headed for a test of support at 8650. Failure would complete a double top reversal, signaling a test of primary support at 8200. Respect of zero (from below) by 13-week Twiggs Money Flow indicates selling pressure. Breach of 8200 would signal a primary down-trend with an initial target of 7200*.
* Target calculation: 8200 - ( 9200 - 8200 ) = 7200
South Korea's Seoul Composite Index is consolidating below 2000 on the daily chart. Rising 21-day Twiggs Money Flow, high above zero, indicates medium-term buying pressure. Expect a test of this year's high at 2050. Breakout would signal a primary advance to 2350*.
* Target calculation: 2050 - ( 2050 - 1750 ) = 2350
Chinese exchanges are closed the entire week for Mid-Autumn Festival and National Day. The Shanghai Composite Index is headed for a re-test of 2150. Oscillation of 13-week Twiggs Money Flow around zero indicates hesitancy. Respect of resistance is likely and would signal a decline to 1800*.
* Target calculation: 2150 - ( 2500 - 2150 ) = 1800
Hong Kong's Hang Seng Index is closed Monday/Tuesday but will re-open Wednesday. Rising 13-week Twiggs Money Flow above zero indicates strong buying pressure. Expect retracement to test 20000 but respect is likely and would signal an advance to 22000.
In economics, things take longer to happen than you think they will, and then they happen faster than you thought they could.
~ Rudiger Dornbusch