Hang Seng has a shooting star

Lat Thursday, Hang Seng broke up and closed above resistant.  Next day (Friday), it continued the upside.  Unfortunately, things turned around an hour before market closed.  It end with a shooting star.  Look at the parallel line that I drew.  It turned around immediately after touching the top parallel line.  Refer to the second charting, Hang Seng Future with T+1.  A much obvious shooting star shown. 

Last posted I mentioned about Taiwan and Singapore.  3 scenarios that may happen - retest, fault break up and a steep upside. ( http://achua138.blogspot.sg/2016/09/singapore-and-taiwan-have-strongest.html).  So, what did you see?  It fall under which scenario?  Allow me show you one of the charting - Taiwan Future.  You got the answer by now?  If no, not a problem, I drew 2 more lines (in black) for you.  One at the top right and the other one at the MACD.  Top right a incline black line and the one at the MACD, a decline black line.  So, what does that mean/show?   

Singapore and Taiwan have the strongest pull back plus rebound

As my previous posted, past two weeks we have the option expiry, Jackson Hole and future expiry.  And we saw markets underwent on either a retracement or pulled back.  After that, it rebounded.  The strongest pulled back plus rebound came from Singapore and Taiwan. 

Let's look at the Singapore future SIMSCI.  It pulled back for 6 days, touches the support and rebounded.  Not only it rebound but it also broke the resistant.

Now the Taiwan.  It formed a head and shoulder during that 2 weeks.  Investors and traders were waiting for the break down.  Unfortunately, it did not happen.  Instead it turned around immediately after it touches the neckline with a runaway gap.  Today, it has a broke up. 

The more you and your experts hoping to see, the more the market goes against your direction.  As I mentioned, during this period, markets are highly manipulated.  Don't listen others.  Do your own homework.  Whether you buy/long or sell/short, make sure you know what you are doing.     

SIMSCI and Taiwan future, the upside looked strong.  Unfortunately, I will be watching on how they perform over the next few days.  It may do a retest before continuing the upside.  It may fall back to the rectangular box cluster, it means it was a fault break out, ........... if the upside will to be too steep, remember these words - how it go up how it will come down.  So trade what you see and not what you think.  Good luck to you and me.