All of the action in the iShares MSCI Hong Kong Index (EWH) from the November 8, 2010 high at 20.24 into the March 17 low at 17.63 has the right look of a completed major corrective period. If accurate, that means that all of the action since March 17 (at 17.63) is part of a new upleg within the dominant, powerful uptrend.

Last Thursday's low at 18.79 ended a minor pullback ahead of a thrust that should confront the November 2010 to May 2011 resistance line, now at 19.56. If hurdled, this should trigger upside follow-through to new highs.

Only a decline that breaks last Thursday's low will begin to compromise the timing of the anticipated next unplug.

By Mike Paulenoff

Mike Paulenoff is author of MPTrader.com (www.mptrader.com), a real-time diary of his technical analysis and trading alerts on ETFs covering metals, energy, equity indices, currencies, Treasuries, and specific industries and international regions.

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