India Singapore strong but China Japan threaten declines
By Colin Twiggs
May 21st, 2014 4:00 a.m. EDT (6:00 p.m. AEST)
India's Sensex is likely to retrace to test the new support level after breaking resistance at 24000. Breach of support would warn of a correction back to 23000, with 21-day Twiggs Money Flow (respecting the zero line from below) continuing to warn of medium-term selling pressure. Long term, the primary trend is upward, with 13-week Twiggs Money Flow troughs above zero signaling buying pressure. Respect of support at 24000 would signal another test of 25000.
* Target calculation: 21000 + ( 21000 - 16000 ) = 26000
China's Shanghai Composite Index is testing primary support at 2000. Follow-through below 1990 would signal a decline to 1850*. Reversal of 21-day Twiggs Money Flow below zero would signal medium-term selling pressure. Respect of primary support at 2000, however, would suggest another rally to 2150.
* Long-term target calculation: 2000 - ( 2150 - 2000 ) = 1850
Japan's Nikkei 225 is testing primary support at 14000. 21-Day Twiggs Money Flow below zero indicates medium-term selling pressure. Follow-through below 13900 would confirm a primary down-trend. Respect of primary support is unlikely, but would indicate a rally to 15000.
* Target calculation: 14000 - ( 15000 - 14000 ) = 13000
Singapore's Straits Times Index is testing resistance at 3260. Several long tails on the weekly chart, and recovery of 13-Week Twiggs Money Flow above zero, suggest medium-term buying pressure. Follow through above 3300 would signal a primary advance to 3600*. Respect of resistance is unlikely, but reversal below 3200 would warn of another test of primary support at 3000.
* Target calculation: 3300 + ( 3300 - 3000 ) = 3600