ASX and Asia fall

By Colin Twiggs
March 18th, 2013 3:00 a.m. ET (6:00 pm AET)

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The ASX 200 retreated more than 2.0% Monday after the Cyprus deposit grab unsettled financial markets. Expect another test of support at 4980. Breakout would warn of a correction, while recovery above 5150 would signal an advance to 5500*. Declining 21-day Twiggs Money Flow indicates medium-term selling pressure.

ASX 200

* Target calculation: 5000 + ( 5000 - 4500 ) = 5500

Dow Jones Japan Index dropped about 1.5%. Follow through below short-term support would indicate no more than retracement to the rising trendline.

Dow Jones Japan Index

Dow Jones Hong Kong Index has fallen about 2.0% so far. Breach of support at 472 signals a correction.

Dow Jones Hong Kong Index

Dow Jones Singapore Index has fallen 1.0% in the morning and we can expect further weakness in the afternoon.

Dow Jones Singapore Index


European markets are likely to open lower. If the US follows and finishes the day with a weak close, negative sentiment could start to feed on itself, tipping global markets into a correction. Overall, the primary trend in the US and Australia remains positive.

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