The Hongkong market followed US indices yesterday as reality set in, the reality that the rally could be over.  Support levels were broken as traders find new support levels.  The market opened at 14755.81, 200 points lower than yesterday’s open and continued falling by as much as 600 points intraday to hit a low of 14,334.15. The index gained a little ground to close 3.81% down at 14,415.91.  Together, it closed the 2 day rally made last Jan 2 and Jan 5 in 2 large days of sell off.

Recommendation:  Parabola sell in the index which will induce any rally to be sold.  Stay in sidelines and wait until a consolidation forms before going long.  Note that it is near the 14,000 psychological level which can act as support or maybe the 32 day moving average resting at 14,300.