The most optimistic chart-based targets have been achieved with the index above 2230 and 2400. The same trade band projection methods can be applied to set the next upside target. This sets a target near 2560. This is a very optimistic target and despite the trend strength, its unlikely this target will be achieved quickly.

The Kospi is analyzed using trade band analysis. The width of the prolonged sideways trading band is measured and this value is projected upwards to give the breakout targets.

The Kospi trend remains astounding, and despite the pullback, the trend strength remains intact. This remains an exceptionally strong trend and traders and investors were alert for consolidation and retracement behavior.

The strength of the trend is shown with the long term Guppy Multiple Moving Average. This is very well separated and this suggests consistent support from investors for the trend.

The pullback that developed has not created any compression behavior in the long term GMMA, and this confirms trend strength.

Support consolidation developed around 2320, and this is also close to the value of the upper edge of the long term GMMA. Traders and investors watch for a rally rebound continuation with the initial upside target near 2460 and a slower trend continuation towards 2560.

This market is a barometer of geopolitical risk in the region and it suggests there is little to worry about other than childish insults being hurled from both sides of the table.

Daryl Guppy is a trader and author of Trend Trading, The 36 Strategies of the Chinese for Financial Traders, which can be found at www.guppytraders.com. He is a regular guest on CNBC Asia Squawk Box. He is a speaker at trading conferences in China, Asia, Australia and Europe. He is a special consultant to AxiCorp.