Large-cap stocks are the most consistently strong performers in Hong Kong, but occasionally small caps take the lead. This appears to be one of those times. The proportion of large-cap stocks trading above their 30-day moving averages has fallen to 51 per cent. Improved strength in their small-cap counterparts, meanwhile, is easily seen in the rally of the HSBC Smaller Hong Kong Index. Lowry Research, the US advisory firm that uses buying power and selling pressure indices to evaluate underlying market conditions, notes that selling pressure on the large-cap stocks that fill the benchmark Hang Seng Index has started ticking up again as buying power has eased from its recent highs.
