• Dow Jones fell sharply on Monday

• U.S. stocks may record their worst consecutive weekly performance since 2002

• the Asia Pacific stock market fell sharply following the overnight US stock market

At the beginning of the new week of trading, market turmoil has disrupted Wall Street and posed a threat to the Asia Pacific market. The three major benchmark stock indexes in the United States fell sharply overnight,

Dow Jones index, SP500 index and Nasdaq 100 index futures fell 1.98%, 3.2% and 3.95% respectively.

If these three indexes continue to fall this week, it will be the worst consecutive weekly decline since 2002.

There is little retreat in the market. In the table below, the three sectors with the worst performance in the SP500 index are energy (-8.3%), real estate (-4.62%) and non essential consumer goods (-4.26%).

Obviously, there are no specific economic events that may lead to the sharp decline of the stock market. Some news media reports are due to the survey results of inflation expectations higher than the previous value released by the New York Fed.

For risky assets, traders may still face a difficult fundamental environment.

The Federal Reserve is about to start cleaning up its nearly $9trillion balance sheet, while inflation is still hovering near a 40 year high.

At the same time, under the strict "clearing" blockade strategy, China's economy is slowing down, which may aggravate the global supply chain problems.

Technical analysis of Dow Jones index

The daily chart shows that Dow Jones index futures have plummeted to the key support range of 32521-31951, which is the lowest closing level since March 2021,

It is 13% lower than the record high set in December last year.

If the daily closing price further falls below this range, it may open the downward space to test the low point in March 2021. On the contrary, if it can stand firmly above this range, it is expected to relieve the downward pressure, and the upper resistance level looks towards the downward trend line since April.

There were relatively few Asia Pacific economic data released on Tuesday, and traders focused on market sentiment. The sharp fall in Wall Street trading last night may penetrate the entire market, putting regional indexes such as Australia's asxx200 index and Hong Kong's Hang Seng index at risk of decline.

As inflation expectations rise, government bond yields generally rise.

Hong Kong's Hang Seng index jumped short and opened lower by more than 4%, while the Hang Seng technology index opened lower by 5.3%.

ASX 200 index technical analysis

The asx200 index has fallen sharply since the end of April, falling below the upward trend line since the low in January, opening the door for further decline.

If the daily closing price falls below the short-term support 7007 (100% fiboyan booth), it may open the downward space test 6747-6894.