Market has been given a major support and upward push from Federal Reserve and major progress in China US trade negotiation.
Fed had been very aggressive in communicating its bias towards towards steady interest rate.
I have not seen any Fed which was adjusting its policy approach and further communicating with Wall Street on a weekly basis.
After each Fed clarification, we move higher to conquer resistance.
China US trade talk has been monitored and all progress being touted daily.
Wall Street is loving updates from two key players Fed & Trade.
BUT...like everything else, we need to keep an eye on severe overbought condition which is being developed in the process.
Here is a look @ RSI for further analysis :
Nasdaq 67.83
SOX 67.91
S&P 500 69.70
DOW 69.72
RUT 75.94
Interesting picture of RSI, most of indices are contained right below 70, BUT RUT is @ whopping 75.94 which means euphoria and froth has developed.
What is @ play in the stock market IF fear of recession has subsided despite weak economic data lately in USA.
Also interesting in Nasdaq that old technology darling are leading stocks not world famous FANG.
Chinese small caps came to life on Friday
Solar stocks are jumping @ abnormal pace
SO many positives are @ play in US market.
Important thing to do now is to watch for sudden pullback to deal with overbought condition.
Good luck with your own analysis of this market and your own comfort level.
BLOG does NOT give buy or sell.
Saleem
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