Are we done with slumping indices......

From August 15th to November 4th...last 11 weeks has seen some of the most painful decline in markets, it has been a straight line decline in all indices, here is some of those stat :

S&P 500 lost 110.02 points or 5.02%

Nasdaq lost 308.47 points or 5.77%

S&P 500 RSI @ 28.26

Nasdaq RSI @ 28.07

It is not % loss which is alarming, but it is the length of this decline, which is painful.

Reason given for this decline started with US$ strength, then Fed intention of raising interest rate and finally it was election in US.

As we all know that election IS coming to an end in 2 business days.

There is more clarity now in this election than last week, baring any more surprises, it bodes well for Monday and Tuesday's trading.

We are "deeply oversold" which i have not seen since June, IF we factor RSI numbers, we are all set for a "major rebound"

All indices and strong stocks are near 200 DMA, which we have not seen since June or even as far back as 2015.

All of the above stat proves, that we are so oversold, that a little patience and conviction will go a long way to recoup most losses.

Stock market hates uncertainty, we all know that last week, created major uncertainty in US election.

Hopefully, winner of US election will be evident to all participant, and they will position themselves to benefit from an imminent election rally.

It has been tough 11 week for most portfolio, but, that is behind us.

Going forward, it should be a very profitable, as post election rally takes hold.

Good luck with your own analysis and comfort level with this TAPE.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed