China has become a major economic power and the Hang Seng Index has shown divergences lately at market turning points which have led to major moves in the SPX.
In Jan 10 the HS made a lower high while the SPX made a higher high. This divergence led to an steep sell off into February. In April further divergences were shown. Last summer the HS made progressively higher lows while the SPX was still trying to find a bottom.
Now the HS has been in a horizontal trading range since the sell off in November while the SPX has clearly exceeded the November highs. I look upon this a bearish indication and see the SPX correcting to the November lows as a minimum. This correction fould begin at any time.
The only way I see this being avoided is by a major rally in the HS index.
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