'Head and Shoulders' fizzled out

Dow gained about 100 points (1%) after one hour of trading. On the first trading day of 2011, Hong Kong, Singapore and most Europe bourses in general gained about 1% to 1.5%.

The possible 'Head and Shoulders' formation for Hang Seng that I have mentioned a few weeks ago has became unlikely as the index was well supported to stay on top of the neckline and has moved side-way for more than a week.


The mini wave v for Hang Seng may drag on but I still like to maintained that Hang Seng is expected to complete its major wave B in January 2011.


Singapore's STI, like hang Seng, failed to form its 'Head and Shoulders' as shown below.


As long as STI does not go above 3,305, it is still possible that major wave B has ended. January can be dangerous.



Dow remained on course to complete its wave v of its major wave 3.


When will wave v end? Unpredictable is its characteristic. It can fall short, it can also be extended.