We found some time to log on and do a chart of one of the asian indices. Asian markets are liquidity sinks and this rally is liquidity driven. Since these markets are relatively small, liquidity moves the emerging markets a lot more, creating greater volatility => greater price swings => greater trader emotion => clearer elliott waves. Just like the Nasdaq is the leader in the US, we follow the Korean index KOSPI. We consider the KOSPI to be the leader in Asia.
Our elliott labels are shown on the chart which explains our bearish stand. We have not shown our cycle work in there (since we don't have the software on our laptop). But our cycle and the apex of the kospi triangle all line up uncannily.
For future reference too, we suggest using kospi to look for liquidity cycles, it has some of the clearest patterns available.
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