Market in overbought territory......

RSI is flashing an overbought market which may need to retrace some of it gains, here is a look @ RSI :

SOX          75.33

Nasdaq     69.12

S&P 500   67.05

DOW        66.41

RUT         51.96

Above numbers are highlighting where overbought condition is, it is SOX Nasdaq S&P 500 and DOW...all above 66.41.......60 area generally considered overbought, SOX @ 75.33 is overbought and need rest / pullback.

Russell 2000 has not participated in this rally which is a concern.

Except for SOX...no other index managed a new all time highs in this run...also a concern...

On top of high RSI numbers TXN reports on Tuesday, semiconductor stocks will react based on its result and more so on guidance...

TWTR which I own also reports on Tuesday.

Wednesday is FB & MSFT are key players in many technology theme.

Thursday is SBUX.....Chinese sales will be in focus.

Based on Fridays close, here are the key index from new all time highs :

S&P 500 is 35 points away.....

DOW 450 points away

Nasdaq  135 points away

Russell farthest from all time high lagging by 177 points....

SO...it is going to be earnings driven stocks and reaction for those sectors...TWTR earnings on Tuesday may impact social media stocks like FB....

FB earnings on Wednesday may impact TWTR......

Good luck with your own strategy going into earnings......

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed