Wow!
Markets are coming to a head fast!
Why is China Tech sector so important?
Like the QQQ & Mega Caps led the S&P growth, so has the China's tech sector. The
NI225
has been in decline since Feb as a result of several controversial decisions the Chinese Gov have made including the crack down on crypto and US listed companies.
Last Friday the
NI225
crossed over the 50/200MA death cross and a descending wedge breakout. Yesterdays close was the first close below the breakout line and last night the decline continued its breakout downward.
This is important because of the gap that has formed between the S&P 500/QQQ/DIA and recently rejected the top of the
NI225
descending wedge.
I'm starting to think the bulls have ran out of steam and will continue to get pulled down by the declining Chinese tech sector and unwinding volatility into September that could put the markets into a 10-12% correction territory sooner than later.
Markets are coming to a head fast!
- S&P futures have been low volume and ripe with volatility growth.
- Jackson Hole approaches and hedging / volatility futures have priced in movement to the downside.
- Bears are waking up from a long 1.5Y nap after feasting in March of 2020.
- China Tech sector continues to get pounded.
Why is China Tech sector so important?
Like the QQQ & Mega Caps led the S&P growth, so has the China's tech sector. The
NI225
has been in decline since Feb as a result of several controversial decisions the Chinese Gov have made including the crack down on crypto and US listed companies. Last Friday the
NI225
crossed over the 50/200MA death cross and a descending wedge breakout. Yesterdays close was the first close below the breakout line and last night the decline continued its breakout downward. This is important because of the gap that has formed between the S&P 500/QQQ/DIA and recently rejected the top of the
NI225
descending wedge. I'm starting to think the bulls have ran out of steam and will continue to get pulled down by the declining Chinese tech sector and unwinding volatility into September that could put the markets into a 10-12% correction territory sooner than later.
