The big picture of the iShares Taiwan ETF (EWT) shows its powerful upmove since August 27 (10.60) into yesterday’s high at 11.87. Most important, however, is the recent surge above a 4-month resistance plateau in the vicinity of 11.50, which now becomes key support on any pullback. As long as that upside breakout plateau contains any corrective weakness, the overall pattern argues for additional strength that projects next to 12.60 –- on the way to 13.50. I regard all of the action between the April high at 11.51 and the August low as a correction of the powerful upleg from the January low to the April high, which if accurate means that the strength off of the August 27 pivot low is the start of a new upleg within the January-present bull phase.

Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.