By Chris Becker
Risk sentiment was pushed lower overnight as the less dovish Fed and a slump in new home sales saw a selloff across Wall Street with tech stocks leading the way. Oil prices shot higher again on more Gulf tensions with the USD roaring back to life.
Looking at yesterday’s action in Asia first, the Shanghai Composite fell nearly 1% lower as it retraced swiftly back below the 3000 point barrier while the Hang Seng Index has moved even further, down 1.2% to 28185 points. The daily chart had been trying to build above last weeks breakout but an inability to make any new session highs above 28600 was telling, so watch for a further retracement below 28000 points to confirm this dead cat bounce:
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