Surge followed by Correction (2010-10-03 HSI analysis)

A new month starts. Traditionally September was not a good month for stock markets, but it wasn't the case for the previous month. Hang Seng Index broke the long-term downtrend line and kept rising. Let's see the daily chart below.



Currently, HSI is following the narrow green wedge. Obviously, the bullish momentum is really great, with the rising of MACD and EMA and the volume. It reaches the previous high in April, and I expect it to break it and reach the next fibs level at 22913. The high level of MACD and EMA is a big concern which might stop the index from rising.

I would anticipate a further rise in the few days, but when those economic data which affects the stock markets starts to pop out, a correction would occur.