By Chris Becker
On Friday afternoon I suggested we were seeing an alignment of dead cat bounces across risk markets – a clowder if you will – and Friday night saw US markets rollover as the USD spiked higher against almost everything. Overshadowed by the Scomo victory here locally, US/China trade tensions are as high as ever and this is translating into marked increases in volatility with a lot of expected gaps higher and lower this morning on the Asian open.
Friday saw Asian markets start to rollover with the Shanghai Composite falling sharply, closing 2.5% lower to 2882 points while in Hong Kong, the Hang Seng Index fell 1.2% to close below 28000 points again. This was the first of the dead cat bounce rollovers on the daily chart, with futures suggesting a return to the terminal lows at the mid 27000 point level. Momentum is not yet heavily oversold and does support a move lower from here:
