Indices are looking healthier technically speaking......

Friday was technically significant from technical point of view, by close S&P 500 & Nasdaq were above both key 50 DMA & 200 DMA.....

Dow @ close was above 200 DMA but it is still below 50 DMA by only 169.12 points....a barely half day gain required...

Nasdaq is only 118.22 points from making a brand new all time high.....

Russell 2000 is only 14.06 points away from making a new all time high.....

The above is a very desired change in overall technical picture...

Here is a look @ RSI for each sector / Index :

Russell 2000          62.14

Nasdaq                  58.13

S&P 500               56.41

SOX                      48.30

Dow                      46.98

FXI                       33.37

As you can see most sectors are looking healthy, only FXI Chinese stocks are in deep slump, they also moved significantly higher on Friday.

This was a very painful 8 trading days when most of the damage was done, then last 4 days were slow but steady recovery days with Friday was a nice UP move.

Technology and small caps are the leader again, many stocks are lagging behind leaders, that could be a good place to position as they should play catch up.

Chinese small caps could explode again as they have lost 30%++ in this trade related panic sell off. 

FXI has a very long way to recovery.....

Good luck with your own analysis and comfort level, lately we were all uncomfortable with this TAPE.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed