You will come across specific terms in these notes (FLD, VTL, and so on). Rather than explain them each time, you will find definitions here: guidance notes for Hurst cycles terminology
Hang Seng Composite – declining into a 40 day cycle trough, due in about 10 days.
We are focused in on HSCI Index’s first 40 day cycle out of what looks to be a 20 week cycle trough that posted in late August. The 40 day cycle trough is due in the first week of October circa 2,664. The 11 September price low is a 20 day cycle trough, which means that we are now in the second 20 day cycle of the current 40 day cycle.
Despite the magnitude of the ostensible 20 week trough 29 days ago (i.e. the 20 week cycle should be rising now) the overall complexion here is bearish. The 40 day cycle peak on 4 September is left translated (early) which is negative and the last 20 day cycle rally was only 5 days long and fell short, again negative. Our view is that price stages a muted 10 day cycle upswing in the next few sessions and we think this is one to fade and sell into the 40 day cycle trough.
This post was first published on Hurst Cycles Notes.
