Short Term Trading Member Forum

[techcharter]

China throws a hissy-fit

The Hang Seng terminated it's bounce rally with a 3% drop yesterday. Though it's difficult to count e-waves on the intraday chart due to the generaous lunch break, I think I see 4 waves down. Volume after the lunch break support the idea of a turn with heavy selling.

The daily stochastic has been overbought the last 8 or so days. The MACD shows decreasing momentum and is about to give a SELL signal. The wide bollinger bands have started to curl in, capping upside advances. The price will most likely move from the upper to lower band befor the pinch is done and widening occurs.

Keep an eye on it tonight. I'm looking for a small drop and 1% rally, or an open 1% higher. Once the 1% bounce is over, get ready for a 6% drop to start. The 6% drop may take two trading days, but it's the overall psychological effect of losing 8% in less than a week for "bluechips" that matters.

intraday:
http://finance.yahoo.com/q/bc?s=^HSI&t=1d&l=on&z=m&q=l&c=

daily
http://stockcharts.com/def/servlet/SC.web?c=$hsi,uu[w,a]dacayyay[dc][pb50!d20,2][vc60][iLp14,3,3!La1...