The front-month futures contract on the Hang Seng China Enterprises Index, or the so-called H-share index, has historical volatility well below its very long-term mean. As volume remains good, this suggests a market that is mature and comfortable at current price levels. Its cautious steps higher are mirrored by the rising Ichimoku cloud, which now provides support at the psychological 10,000-point level. The most recent corrective drop from 10,700 points – just ahead of our 10,800-point target – was also stopped by the 50 per cent retracement support level at 9,900 points, just ahead of long-term trend-line support from the low in February 2016. This week’s attempt at breaking above the top of the cloud suggests an imminent retest of March’s high and from there to our original target.