Extremely worried about US stock market......

I am extremely worried that US stock market may correct sharply starting very soon. Reasons are many but the biggest reason may surprise many.

Let us look @ my worry index, there are many i follow, none fundamental but all technical, they are in danger zone......

RSI.........

Nasdaq.............69.91

S&P 500. 72.39

SOX................75.42

Dow................78.64


These numbers are downright bearish....
RSI @ 60 bearish / overbought........RSI @ 30 bullish / oversold

Bull / bear ratio.......

Bull  60.4%

Bear 15.1%

Again bull @ 60% bearish / overbought near high of its range, bear @ 15.1% is near lows of its range clearly flashing bearish signal

SOX UP for 3 straight week.......extremely overbought

Dow      @ 5 weeks high......extremely overbought

Nasdaq     3 weeks UP move....overbought

S&P 500 2 weeks UP move.....

Lastly, my own monitoring tool, there is no fear anywhere, everybody is very comfortable with this TAPE and ignoring all overbought signals......popular theme in these situation is " its different this time "......that is a tell tale of imminent correction each time......

SO...i decided to listen to my inner voice and Sold 40.87% of my current holdings AH on Friday..my before sale exposure was 20% lower than my usual position.......based on my normal exposure, currently i am @ 39% exposure......i may reduce it further on Monday...

All i can say, be very careful, nothing goes UP in straight line ever.....we are sitting @ decades high, means sharp pullback highly probable.....

In these situation, being wrong is not such a bad thing.......

Good luck with your own comfort level and your own take of this TAPE....

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed