By Chris Becker
Tech stocks were the main casaulty overnight with the NASDAQ and FTSE the only bourses to fall back despite a positive sentiment across other risk markets. Solid economic prints from Europe in particular inflation bolstered risk and the Euro, while US Treasury yields fell as the chance of a Fed rate cut by December increased from 90% to 100%.
Looking first at the Asian session yesterday where the Shanghai Composite rebounded slightly as a result of the manufacturing PMI, finishing 0.5% higher to 3078 points. In Hong Kong the Hang Seng Index went the other way by retreating nearly 0.6% to finish at 29700 points. This puts the recent bounce off of daily ATR support at the 29000 point level in doubt, but we’ve been in this sort of dip situation before and should still result in another retest of the 30000 point resistance level:
