Bearish Sign Flashes After 25% Drop in Chinese Tech Stock Gauge

The Hang Seng Tech Index has slipped beneath a crucial support line that suggests more selloffs ahead given geopolitical tensions and lingering earnings worries.

The gauge that tracks China’s biggest technology companies is down 25% from an October high, and has fallen below the neckline of a classic head-and-shoulders technical trading pattern — widely regarded as a warning of further drops. Once the neckline is breached, it implies that sellers have gained the upper hand, raising the risk of further declines.