China: Shanghai breaks support

By Colin Twiggs
November 28th, 2012 1:00 a.m. ET (5:00 p.m. AET)

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China's Shanghai Composite Index followed the DJ Shanghai Index, breaking primary support at 2000 to warn of a down-swing to 1850*. Completion of another 63-day Twiggs Momentum peak, this time deep below zero, would indicate a strong primary down-trend. Recovery above 2000 is unlikely but would suggest a bear trap.

Shanghai Composite Index

* Target calculation: 2000 - ( 2150 - 2000 ) = 1850

Dow Jones Shanghai Index earlier broke support at 250, signaling a primary decline. 13-Week Twiggs Money Flow below zero warns of selling pressure.

Dow Jones Shanghai Index

* Target calculation: 250 - ( 270 - 250 ) = 230

Hong Kong's Hang Seng Index is far stronger, testing resistance at 22000. But a sharp fall on 13-week Twiggs Money Flow warns of medium-term selling pressure. Breakout above 22000 would signal an advance to 24000* but reversal below 21000 is as likely and would indicate a test of the rising trendline at 20000.

Hang Seng Index

* Target calculation: 22 + ( 22 - 20 ) = 24

It takes a good crisis to get us going. When we feel fear and we fear loss we are capable of quite extraordinary things.

~ Paul Gilding