Sunday, 2 December 2018

Hang Seng, HK50

The weekly HK50 chart indicates that the Cycle I ended with a Primary 5th wave pattern of an ending diagonal, giving confirmation of the count. The Primary [1] wave of Cycle III had an Intermediate 5th wave extension. Now the retrace expectations are all important so the daily chart is also needed, see below...

The retrace of Primary [1] when the 5th is extended is typically sharp and relatively rapid. What we have with the Hang Seng is best described as being similarly sluggish. This opens the door to conjecture about the further mustering of the required momentum to drive a deeper retrace than what we see before us.
The slow pace of the retrace so far strongly suggests that any C-wave will be at an even slower pace and with longer duration. But first it appears that the B-wave has commenced. Hopefully it will have clarity of form that will bring broader consensus.  

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