ASX: Following China into a down-trend
By Colin Twiggs
June 18th, 2013 1:00 am EDT (3:00 pm AET)
The S&P 500 is testing resistance at 1650, but declining 21-day Twiggs Money Flow warns of continued selling pressure. Breakout would signal an advance to the upper trend channel, around 1700. Reversal below 1600, however, remains likely and would indicate a correction to 1500.
China's Shanghai Composite Index broke primary support at 2170 on Thursday. Follow-through below 2150 would signal a decline to the 2012 low of 1950*.
* Target calculation: 2150 - ( 2350 - 2150 ) = 1950
The ASX 200 is retracing to test its new resistance level at 4900. Respect would confirm the primary down-trend — as would a peak below zero on 21-day Twiggs Money Flow.
The ASX Small Ordinaries Index, reflecting retail investor interest in the market, continues its primary down-trend. Breach of the 2012 low at 2040 warns of a decline to 1700*.
* Target calculation: 2050 - ( 2400 - 2050 ) = 1700
Our object is to get as many of our people as possible to take part in manly,
healthy, vigorous pastimes, which will benefit the whole nation; it is not to produce a limited
class of athletes who shall make it the business of their lives to do battle with one another for
the popular amusement....... [The] existence of a caste of gladiators in the midst of a population which does not itself participate in any manly sports is usually, as it was at Rome, a symptom of national decadence.
~ President Theodore Roosevelt: Professionalism in Sports (1890)