Large caps are showing signs of correcting their earlier gains, indicating that the recent rally may be nearing its end.

Fresh money is flowing into the Hong Kong stock market to bet on further yuan rises and the money may flow into the domestic markets via various channels too.

The breakthrough of the key resistance of the one-year moving average delivers a positive signal to the market and could mean further gains in coming days.

The market should rise further in coming sessions as investors’ confidence got a boost from today’s rally.