Look at the Hong Kong index:

hang seng

It is painting a monstrous triangle that has to be broken one way or another and lead into sizable move. Which way it will go?

As far as I know Hong Kong is heavy in semiconductors and affiliated sectors. If you look at US semiconductors index ($DJUSSC) it broke down to the ’05-’06 trading range breaking through all moving averages, even 600 DMA. So why in heck there is even a slightest chance that Hang Seng will not follow? It will, as soon as within this month

Update. I was wrong that Hong Kong s heavy on semiconductors – it is not. But the correlation with $SOX is not invented by me, I took it from Murphy book and I think it still holds. The nature of this correlation is unknown to me, then

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