Hang Seng Short: Expecting Wave 2 of 3 and 3 of 3Hang Seng had been amazingly resilient on Friday, falling much lesser than the US indices. However, I believe it is just lagging by 1 impulse wave.
If you have seen my last few updates on the wave counts, you will know that I counted completion of wave 3 of 3 for the tech stocks and that Nasdaq itself is nearing the target completion of 5 waves of wave 3 (now on wave 4 of 3). Thus, to me, Hang Seng is lagging by 1 impulse wave.
Back to this analysis, for the last down wave on Friday, you will see that I've plotted a purple minute wave with the 5th wave further broken down into orange minuette waves. The orange minuette wave is only on it's 4th wave. However, I believe that we might not actually see a proper wave draw by price movement. I propose that the fifth wave will be unseen. How so?
Gap down on Monday opening (marking the end of minuette wave 5) and then a shallow retracement up that is likely to happen during the 1st hour of HK trading session to complete purple minute wave 2 before we see Hang Seng crashing for a wave 3. It might be similar to what happened to Nikkei on Friday's Japan trading hours.
Good luck!
