Something funny on HSI

I read on CNA today about forumers comments that HSI made spectacular move. On the first look at numbers, it is much more spectacular than STI, 400 plus points up! However, this is not the first time HSI made such move. Even with the gap up, it does not make today's pattern uncommon. In fact, if you look at the chart you can see that it is parts and parcel of HSI, unlike STI.


Fig 1 HSI Daily Chart

I reverted back to the daily chart to see the day to day movement.Although it is a huge move today, there is something very wierd about the whole thing. The most important not is that it is close to the 50% Fibonacci retracement at 21,309, making it highly probable of reversing.

Although both indicators are moving up, I can't help to notice that they are of divergence to the actual level on the chart, showing weakness in the whole thing.

Third and most important, did anyone see the wedge (again!)? Okay, there are simply too many wedges this round, you got big wedge there small wedge here. Can they come up with something else?

Enough about the ranting, so if the wedge holds, it will retreat back down tomorrow because of the envelop. Anyway, a big gap to cover.If I project the wedge downwards, my first measurement on its objective would be 19,887.

My biggest problem at this moment is how can this be so? Since there is a reverse head and shoulder pointing to 22,025, then you have this wedge to bring it down below the neck line? At the present moment, I can't really imagine how the pattern is going to be, we will have to wait longer. My bet is that the wedge would hold a stronger influence than the reverse head and shoulder.