The Hang Seng Gears Up for a Move

Protests and weakness in global markets weighed on the Hang Seng Composite ($HSI) in September as the index fell to its prior resistance zone. The index stabilized in October and got a nice bounce on Wednesday. This is an interesting area because it also represents a 50-62% retracement of the prior advance. If the Hang Seng is going to reverse, this is as good a place as any. The Percentage Price Oscillator (PPO) is turning up from oversold levels and a break above the early October high would be quite bullish.  

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