As mentioned in my previous posts, Dow and Bursa Malaysia Industrial Index are either in the process of forming waves (I)-(II)-(III)-(IV)-(V), an optimistic scenario or they are heading for a pessimistic A-B-C corrective wave.
The charts for Shanghai SSEC looks rather different but Hong Kong Hang Seng Index is having a form with wave count quite similar to that of Dow.
Shanghai SSEC has completed its major wave (I) by August 2009, since then it has remained in consolidation phase and has completed its wave A and B and sub-wave i & ii of major wave C as shown above. It is expected to drift lower in the next one to two months to complete its wave C of its major wave (II).
Hang Seng is similar to Dow, it is either in the process of forming wave (IV) or it has completed its wave (IV) and has started forming its wave (V) if it continues to move upwards, or it can start to move down from here to complete its major wave C to retest its March 2009 low.
Hang Seng in fact has dropped below its multiple heads formation's neckline. It put on 449 points (2.2%) today to re-touch the neckline. If it starts to move down from here and goes lower than 20,000 level, it is likely that it is going for the big C.
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