Hang Seng

 The Hang Seng most often has a good correlation with the JSE Top 40. The major correction that has been underway is no exception. The 5-3-5 pattern also requires one more leg down.

The monthly chart projects what another systemic risk panic would look like. There would need to be a total loss of confidence in the FEDs ability to magic away every and any risk. That confidence is all there is to justify the difference of perceived value and keep the burgeoning zombie sector in the count. The return to reality via the recovery transition suffered from being unable to walk at the first attempt. The patient looks likely to need some recess sessions before restarting the recovery of the vital organs and then maybe one day attempting to walk again. If another attempt is ever made an exoskeleton of some kind will probably be needed to make it happen and keep the magic going.