Bear-Market Rally Coming To An End

INDEX:HSI   Hang Seng Index
1638 18 13
Analysis of the Hang Seng to get an idea of global markets. The green arrow shows the top...the same date that the US markets started the crash.... Oct             2007. The only difference between this market and the US is, the US market is forming a Expanded Flat (huge) where the b wave rises above the top...wave 5.
The most important part to this entire chart is the red converging trendlines forming an Ending Diagonal that started at the red arrow in 2011. It appears it has a b wave and c wave for a complete ED. Just a guess...this could last until August this year. That being said, any trade above wave 3 could call this complete.
I would expect all markets to crash nearly at the same time...as they did before in 2007. This, and the Dow, show that we are currently in a bear-market rally. The bear market that started Oct             2007. This will be the second shoe to fall. This chart also bolsters the view that the Dow, is also forming and Ending Diagonal . This explains the weakness and the fact that it's hard to chart.
Comment: Wave (i) ended at 20362 on 9-24-15, Wave (3) MAY have started down OR Wave (A) was up from wave (i) to 23452 ending on 10-16-15, making this move down a possible wave (B) for a retracement to/past wave (A) for wave (C)...possibly reaching the underside of the Ending Diagonal.
Thank you for your sharing, well done! I have the same counter,HAHA.
you were absolutely right
hello, do you have any update on HSI? thanks in advance!
I updated the comment as best I can. To me...this looks like a "sneaky" Expanded Flat for wave (i), which I have ending at 20362.
+1 Reply
wien PRO willworknow
thanks! much appreciated!
No worries...just an update to the update. This MAY be working on a lesser degree 1st have within a the larger degree 3rd (iii). The only reason I say this is due to the global markets.
UPDATE: The move down to roughly 20300 on 9-23-2015 could be seen as 5 waves down to complete a first wave. The move up to 23392 area (10-22-2015) could be an A wave with drop for a B wave up for a final C to complete wave 2. To keep this Ending Diagonal alive and well, I would not want to see trade above the lower red trendline. It's commonplace for price action to meet the lower trendline one more time for a "last kiss goodbye". Once the 2nd wave up is complete, I would expect around 13000 points to the downside (wave 3) taking MAYBE 4 months or so....but that's hard to say...the time. That is hard to believe...but you wouldn't have thought the 8300 points were possible when the Ending Diagonal completed. I wish I could make additions to Tradingview charts. The markets are dynamic.
AngelNoo willworknow
much appreciated your update!
HI, would you consider this a possibility, that Hang Seng index just moving along/within the channel?
willworknow AngelNoo
I cannot get to this image. IF this was an Ending Diagonal to complete wave B...the move down should (and has been) swift....so far. But you know markets...there are no absolutes.