Asia markets open sharply lower, following the selloff in US overnight. The -1.8% decline in Hong Kong HSI (at the time of writing) looks tiny comparing to the near -5% decline in NASDAQ. But the technical development is much more bearish.
The index survived all the political turmoils in the past few months, including the forceful implementation of national security law by the Chinese government. But the channel that started back in March is finally broken with today’s decline. Daily MACD is also trending down.
It now looks like corrective rebound from 2139.26 has completed with three waves up to 26782.61. Immediate focus is now on 24167.78 support, which might be tested next week if the decline continues. Firm break there will confirm this bearish case and target 21139.26 low again. That could be accompanied by selloff in Asia markets elsewhere, which in turn might drag down Australian and New Zealand Dollars.