Nikkei Slips Despite Buying Support

By Colin Twiggs
May 24, 2010 6:00 a.m. ET (8:00 p.m. AET)

These extracts from my trading diary are for educational purposes and should not be interpreted as investment or trading advice. Full terms and conditions can be found at Terms of Use.

Most markets display signs of short-term buying support, indicating a bear rally. This is likely to be a temporary pause rather than an end to the correction. South Korea and Japan, affected by heightened tensions with North Korea, failed, however, to join in — the Nikkei 225 signaling a primary down-trend.

Commodities & Resources Stocks

The Baltic Dry Index is advancing toward 4650. Rising demand for dry bulk shipping — primarily iron ore and coal — is at odds with the down-turn in Chinese stock markets, but the lag can last several months. Breakout above 4650 would confirm the primary up-trend, while reversal below 2900 would warn of a primary down-trend — if confirmed by the Baltic Panamax Index.

USA

Dow Jones Industrial Average

A strong close on Friday indicates a Dow rally to test 10700. Twiggs Money Flow (21-day) recovery above the declining trendline would confirm.

Read More....
S&P 500	Canada: TSX	UK: FTSE
Germany: DAX	India: Sensex	Japan: Nikkei 225
South Korea: KOSPI	China: Shanghai Composite	Australia: All Ordinaries

Choose always the way that seems the best, however rough it may be; custom will soon render it easy and agreeable.