Hong Kong Hang Seng Index (14504)

In my June 2005 comment, I said that the Hang Seng Index was stuck in a short term trading range. It has poked its nose above 14000 four times since late 2004, and failed each time below resistance at 14300, until now. This time we have a modest breakout that looks like it could blossom into something worthwhile, so I am moving from a neutral to a positive intermediate term outlook for the Hang Seng Index.