After 2.50% slump in Nasdaq, now what?

Nasdaq slumped 2.50% on Friday alone, that is what some money managers hope to gain in a year in any tough market.

RSI came crashing down on Friday, here is the picture of RSI in popular averages ;

Russell 2000       39.83

TAN ( Solar )      43.10

DOW                  46.76

S&P 500             53.91

Nasdaq               56.11

SOX                    59.25

IF you look above and compare with last week same time, it is a tale of two different market, Last week was full of optimism until Wednesday when Fed gave all the indication where everything is interest rate wise & its direction, zero increase in 2019 was the verdict.

Interest rates are inverted in many markets and is causing major concern about recession and worldwide economic weakness.

China US trade is now going in reverse, China taking away some concession given before as US seems to consider every offer as no go.

FBI special counsel report is out of the way and traders may focus on economy and trade to get their focus right instead of politics in the mix.

Start of the week may focus on trade and oversold condition in market, it may tilt either way @ open, may find footing by close as buyer step in.

As you can clearly see in RSI that SOX is the strongest of all in this selling, Semiconductor being strong is a very good omen for Nasdaq.

SO..IF I am looking for new ideas, I will overweight SOX.

Good luck with your own analysis and comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed