ASX 200 and Shanghai find support

By Colin Twiggs
November 19th, 2012 3:00 a.m. ET (7:00 p.m. AET)

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The ASX 200 found short-term support at 4350. Expect a rally to test the declining trendline at 4450 but this does not indicate the end of the correction. The 21-day Twiggs Money Flow peak below zero reflects medium-term selling pressure. Respect of resistance at 4450 would signal another decline.

ASX 200

Dow Jones Shanghai Index broke its September low of 249 but rallied strongly towards the close. Bullish divergence on 21-day Twiggs Money Flow indicates medium-term buying pressure. Follow-through above 250 would indicate a rally to the October high of 266.

Dow Jones Shanghai Index

The man who builds a factory builds a temple, that the man who works there worships there, and to each is due, not scorn and blame, but reverence and praise.

~ Calvin Coolidge