Japan’s Nikkei 225 Index continues to test its rising trendline and support at 21000, with resistance forming at 22000. A Trend Index peak below zero warns of medium-term selling pressure.
India’s NSE Nifty Index has had a strong bull run, with Trend Index troughs above zero. But now the Index is heading for a test of primary support at 10000, warning of slowing momentum.
South Korea’s Seoul Composite Index remains bearish after breaking support at 2450.
Likewise China’s Shanghai Composite Index found resistance at 3300.
Hong Kong’s Hang Seng Index is the pick of the East, with a long run of Trend Index troughs above zero. Breakout above 32000 would signal a fresh advance.
In Europe, DJ Euro Stoxx 600 is struggling with resistance at 380/385 while bearish divergence on the Trend Index warns of selling pressure.
The Footsie is similarly headed for another test of resistance at 7300 but bearish divergence on the Trend Index warns of selling pressure.
In the US, the S&P 500 is testing medium-term resistance at 2800. The difference is that a Twiggs Money Flow trough at zero warns of buying pressure. Breakout above 2800 is likely, bringing the long-term target of 3000* within reach.
* Target calculation: log scale 750 x 2 = 1500; 1500 x 2 = 3000
Canada’s TSX 60 is recovering. Breakout above 940 would suggest another advance.
Patience is required to weather the volatility of the next few weeks without making short-term decisions.