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.

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

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

Conclusion:

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.

Being democratic is not enough, a majority cannot turn what is wrong into right. In order to be considered truly free, countries must also have a deep love of liberty and an abiding respect for the rule of law.

~ Margaret Thatcher