The Hang Seng Stock Index is a free float, adjusted market capitalization, weighted stock Market Index in Hong Kong. The Index records and monitors daily changes of the largest companies in the Hong Kong Stock Market. It is the main indicator of the overall market performance in Hong Kong. These 50 constituent companies represent about 58% of the capitalization of the Hong Kong Stock Exchange. At Elliottwave-Forecast, we have been tracking the Index sequences together with the FTSE 100 (The Financial Times-Stock Exchange 100 Index). FTSE 100 is the share Index of the 100 companies listed on the London Stock exchange with higher market capitalization.
The Hang Seng Index and FTSE 100 both are showing the same sequences since the all-time lows and both are showing an incomplete sequence since the lows at 2008-2009 range. Today, the Market today can advance in 2 types of sequences. The first type is 5-9-13 or motive sequence and the second type is 3-7-11 or corrective sequence. Both the Hang Seng Index and the FTSE 100 advance in a corrective sequence and both have not reached the 100% from the all-time low.
The Market by nature will always runs in one of the 2 sequences above. Both Hang Seng and FTSE 100 are showing the same outcome which is an extension to the upside within the cycle since the 2008-2009 low. The charts below show the extension target in both indices, and the upside in both indices will drive the rest of the World Indices higher. This means that SPX 500 (The Standard & Poor’s 500), which is the market capitalizations of the 500 large companies in the United States, has scope to rally into levels which not many people are expecting such as 3245 or even the 4000 levels.
The rally in SPX 500 from all-time low can become a 5 waves impulse if SPX 500 can break above 3245 before the Hang Seng and FTSE 100 reach the 100% from all-time low and finish the blue sequence as charts below show. At the end of the day, the world indices are here to extend and contrary to many popular street opinions, they will remain a buy in the dips in all time frames until Hang Seng and FTSE 100 reach their target.
