Indices all set to rebound.....

Indices have seen relentless selling, 5 straight days of down down move.

All the froth from this TAPE is over.

RSI is back into very attractive buy levels as listed below :

RUT              44.16

DOW            48.92

SOX              48.95

S&P 500       49.35

Nasdaq         50.20

As you can clearly see all indices except Nasdaq is below 50 RSI, RSI in 40 has been recognized as a good entry level, most pullbacks ends in 40 RSI area.

Also you can see that most indices and index are testing 50 DMA & 200 DMA major support area, a turn UP from those support level will be a very good technical reading for those who follow.

Stocks are getting participation from most sectors on a rotation basis, this is a healthy sign.

VIX also in 16 area normally a support number in bullish TAPE..

VIX did not shoot UP in this pullback, a sign that professionals are not looking for a major slump.

SO...it is important to position with strong stocks to make or recoup investment dollars.

All of the indices and key index are above 50 DMA which is a key technical support.

Good luck with your own take on this market and your own comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed