Correction to Hang Seng's Wave Count

Anonymous (Oct 28) has pointed out that the bottom to the 2008 bear run was set on October 2008 and not on March 2009. A check on the daily chart (instead of the weekly chart that I have been using) has clearly shown that the bottom is indeed set on October 27 of 2008 at 11,015. The wave count has been revised based on October 2008's low.

(Click on the chart to enlarge)

Until the November 2010 high, Hang Seng has indeed completed 5 waves as pointed by Anonymous

With this revised wave count, there are 2 likely options for Hang Seng at this moment. A very bullish wave count as shown below, a wave (3) of major wave (III) on the run. This run-up is usually very dynamic with very high volume.



OR Hang Seng has yet to complete its major wave B. there will be a short-term run up to complete the wave (3) as shown below before the starting of major wave C.


To enable Hang Seng to have a strong run-up, Dow is likely to extend its current run-up from 5 waves to 9 waves. Hang Seng won't be able to run if Dow started to move lower rapidly.




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