The Chinese stock market indices have reversed higher in striking fashion.
But this has all occurred after the Chinese government announced a robust stimulus package.
And this has put the widely followed Hang Seng Index in the news.
Today’s question: Is the rally for real?
Below is a chart of the Hang Seng on a “monthly” basis. As you can see, the rally was fast and furious… reaching up near falling trend line resistance. But then price reversed lower, creating an indecision monthly candle stick (as of this writing). Will it remain this way? Finish even lower? Or reverse higher?
One thing is for certain: Where this index closes out the month will send a crucial macro message to lagging international markets. Stay tuned!
Hang Seng Index “monthly” Chart
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The author may have a position in mentioned securities. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
