Hong Kong is far away and completely outside my “ken” so to speak. Some might say that is true for everything. Anyway for superstitious or plain dumb reason I have always thought that if anything goes seriously wrong with the World economy, there is a good chance that it starts here in China with HK the most free part.
Notice that the index has NOT made new highs and I find this rather curious as this is not where the Lehman problems were and growth has continued here at a torrid pace. Initially, paradoxically, this index lost more (almost 70%) than the US DOW or S&P.(at about 50%). However, the really interesting thing is the absolute textbook contracting diagonal, the wedge! It needs just one more 1/2 leg up to complete which should target something just above 26000. This is where the “intermission” was on the way down. To get there could take a while or take hardly any time at all. Furthermore I am not sure how much this index is in synch with the rest of the World. But the message is pretty clear and that is that it is time to get out.