The crowd bought on the news in Asia overnight, after the well anticipated Hong Kong inflation report came in at a new ytd high of +6.1% year over year. If I am right, July’s inflation data could be lower sequentially from this June report. That would continue to inspire a short term covering rally in Asia, particularly Hong Kong.
The Hang Sang Index closed at 22,532, up +3% overnight. My short term resistance level was 22,209, so this is a positive event. The next critical level is 23,742, and I will rest comfortably, dependent on the incoming data, to make a call around that pin.
chart courtesy of stockcharts.com