Following the stock market crash in the US, Asia is also in crisis mode. At the time of writing, Nikkei is down -3.89%, Singapore Strait Times is down -2.7%, and China Shanghai SSE is down -4.52%. SSE has now broken 2016 low at 2638, which is a key support level, not for trade war, but for the crash in the US.
Hong Kong HSI gapped down at open and is now down over -1000 pts, or -3.84%.
The down trend started earlier this year as dragged down by China’s SSE. Now DOW also joined the party. Based on current momentum, HSI heading to 61.8% retracement of 18278.8 to 33530.6 at 24105.0 for sure. Realistic chance of some support could be found at 76.4% retracement at 21878.23. But let’s see. It could be worse if China SSE accelerates further downward after breaking 2600 handle.