What’s with Zurich SMI?

Member: Can you please help check Zurich SMI?
Orpheus: It’s a breakout. There could be follow up buying coming on SMI.
Member: But the rest are quite weak in Europe or Asia?
Orpheus: Classic primary (multi month) or intermediate (multi week) tops are characteristic of non confirmations between global indices. We may be wrong about the top part, but this is our preferred opinion. That divergence (new highs on one market and new lows on the other) suggests global equity is exhausting its trend from Mar 09.
Member: But Asia’s extremely weak this day, say HSI (Hong Kong), you think the relative momentum will last?
Orpheus: We don’t think it will last this is why a final bounce an Asia could be pending. Above all one asset has to outperform the other. Performance cycles, market patterns are very ordered a sideways action in one asset and a trended move in the other takes care of relative performance
Member: But say capital flow out of Euro back to Dollar keeps rising would take some time for this trend to reverse right?
Orpheus: You have a point, but please don’t forget that markets divergence cannot be extreme. We can’t have a market making new high and another making new low as a norm or rule. Sure there is definitely a sense of fear in the market, but this is also because the rally is 12 months old
Member: What’s your take on HSI (Hong Kong)? And if to pick one stock market index with weakest momentum, which would you choose?
Orpheus: We don’t know about weakest momentum. As there are different time degrees of momentum. Orpheus selection of indices as strong or weak comes from Numeric Ranking. This numeric ranking is based on proprietary research called time fractals, performance cycles. We will be posting Alpha global indices today. We caught HSI pretty early near the top, the structure still looks weak to us.