For a month, we have been watching the front-month Hang Seng Index futures contract consolidate in a triangle at the top of a very large weekly Ichimoku cloud. We had warned that we might have come to the end of an A, B, C-type corrective rally, stalling between the 50 and 61 per cent retracement resistance levels. Last week’s bearish engulfing candle is slightly negative, as are the close below the bottom of the little triangle and this week’s dip into the cloud. On this, the lagging line has ducked below the bottom of the cloud of 26 weeks ago – yet another slightly bearish technical signal. The tide looks set to be turning – bearish.