US stock markets closed down sharply overnight as the selloff in Facebook spread to techs and then other sectors. In the background there is also concerns of Trump’s trade war against China. Down dropped -1.35% to 24610.91 and S&P 500 dropped -1.42% to 2712.92. NASDAQ suffered the biggest damage by losing -1.84% to 7344.24. Nikkei opened lower and is down -140 at time of writing. HK HSI is down -0.55%.
Even though DOW managed to pare back some loss towards the end of the session, the break of 24668.83 support now put the bears in control. For the near term, deeper fall is expected to 24217.76, or slightly further to 23.6% retracement of 26616.71 to 23360.29 at 24128.80. Overall, it’s bounded in corrective pattern from 26616.71 and price actions inside this ranging pattern is rather hard to predict. We’ll keep an eye on downside momentum to gauge the chance of a test on 23360.29.