By Chris Becker
The dead cat bounce is now over as the orange mirkin couldn’t put any life back in, swamping the Chinese with tariffs and a tirade on Friday night, sending Wall Street into a frenzy. It will be a bath of blood on Asian markets this morning as Chinese authorities reacted in kind, setting off a new conflagration in this trade war. The USD was sent down sharply, as Yen and gold rose on safe havens, while the Aussie dollar was put under pressure as commodity prices dropped.
Looking at the action on Asian markets on Friday, where Chinese stocks lead the charge with the Shanghai Composite up nearly 0.5% to 2897 while the Hang Seng Index did the same, up to 26179 points. Price had been threatening the high moving average on the daily chart, but buyers are not yet confident enough to push it higher, so the bourse ended the week where it started. I’m watching the low moving average to come under enormous pressure for an inversion back to the weekly lows below 25000:
