Tuesday, 10 March 2015

Hang Seng Elliott Wave count indicates 60%+ decline ahead

Weekly chart shows the big picture Elliott Wave count. Nothing new, I have shown it many times before, as it has been the best fit for market action for many months now. Under this count the market should fall to below the 2008 low, likely some distance below. A 60%+ drop, likely much further.



Daily chart next. I have been illustrating a Head and Shoulders top on Twitter, which is certainly valid and instructive, but thought I'd show a different view here. The nearby overhead trend line should act as resistance. Right now I'd be surprised to see the market get anywhere near that line. Anything is possible.