Global stock markets sold off on Thursday after a warning from tech giant Apple Inc about slowing China sales, while data this week showed manufacturing activity shrank in December for the first time in more than two years. But HK markets failed to follow suit on Friday morning as A shares quickly bounced back from the low bottom amid smart money came in to squeeze the short sellers as China’s central bank said on Friday it was cutting the amount of cash that banks have to hold as reserves for the fifth time in a year, freeing up $116 billion for new lending as it tries to reduce the risk of a sharp economic slowdown. The bounce was so quick and sudden and traders started to short covering their positions when the futures price failed to move further down to 25000 level this week, and the market sentiment suddenly changed to more optimistic as positive news came in to boost the market back to 25500+ level. Personally, I think HSI will slow down its momentum near 26000-26200 resistance level but overall the market finds its support near 24500-25000 support zone. In the meantime, investors are still reluctant to enter into the markets, we need to take some time to digest the news and see how the negotiation on US-China Trade War goes on coming days.