By Chris Becker
US stocks gapped down on the open and remained in the red all session in response to the weak session in Asia, with European bourses barely keeping afloat as well. All because the punchbowl might be filled only halfway by the Fed instead of overflowing, as US Treasuries remained slightly above the 2% yield level and the USD remained strong against the undollars.
Looking at the action in Asia yesterday, where the Shanghai Composite was flummoxed by not only by the NFP result on Friday, but also suggestions that the trade war with the US is far from over, falling more than 2% to be at 2933 points. The Hang Seng Index also put in a big selloff, falling 1.5% to 28331 points, breaking well below the previous set of highs at the 28500 level. The area to watch here is the low moving average support but also the previous session lows just above the 28000 point level which must be supported for this rally to continue:
