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Tuesday, August 22, 2023

Market Update Technical Tuesday

 Funny, Yesterday we were looking at a technical target of the China Hang Seng, and then last night I saw Bloomberg Asia talking about a possible, "technical bounce" on the Hang Seng - after what they're calling a "route" - and that's exactly what we saw overnight.  

I suppose the hedge funds - behind the scenes at Bloomberg - are seeing the same thing I'm seeing, but they could at least give credit where credit is due. 

Word of warning; don't just go piling into China. Wait for an overshoot (shakeout), beyond the target. 

$HSI China - 30 min chart - simple bearish channel 

Speaking of overshoots: 

Tech continues to rally, and for no other reason than it was oversold, as I pointed out on Friday, plus Options Expiration Friday had passed, so the rats who control this market are allowing tech to run - as I alluded to yesterday. I would not be in a hurry to chase tech anymore than I'd be rushing in to buy Chinese equities. 

As I've pointed out in previous blogs; China leads tech, and that's exactly what we've seen over the past few weeks. 

$NDX - 60 min. chart - I'll be watching for this suspected suckers rally in Tech to top out today 

It's possible that tech continues to bounce out of its oversold condition, but I don't like the low volume, or the gap that was left behind yesterday.  

Take Care, 


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