Thursday, 28 May 2015

Hang Seng testing neck line of Head & Shoulders top, break would open door for 60% decline

Daily chart shows the Hang Seng is today testing the neck line of a Head and Shoulders top. Needless to say, until/unless the neck line is broken, you could view it as trend line support, and look for further upside.



Weekly chart shows that the recent peak coincided with the top of a 3.5 year old trend channel.



Zooming out further shows my big picture Elliott Wave count and implied scenario. All dependent on a break of the neckline. Rally through nearby trend line resistance can't be ruled out, in the markets anything is possible.


NASDAQ rally drags S&P 500, Dow up toward fresh record highs

Tech stocks rallied strongly in US Wednesday trade, dragging the broader market higher. I deliberately use the word dragging instead of lifting, as this market looks tired.

NASDAQ 100 is testing parallel trend line resistance, a break looks likely and should be followed by fresh highs.



S&P 500 is back above the key resistance/support line of recent months.



Dow rallied from trend line support.


Gold testing key trend line support