China tariff may spell trouble for markets....

Here we go again.....

Was afraid it will happen....

President Trump issued directives to tax $200 billion Chinese goods @ 25% tariff rate effective this Friday....

North Korea over the weekend also test fired a long range missile near Japan, another provocation....

Market reaction will be predictable worldwide as of tonight.......

BUT it may give us another buying opportunity by Monday close...

TAPE has been erratic lately in trying to correct excess...

It was euphoric until few trading days ago when RSI was in high 70's.....

Here is current RSI read :

TAN           69.24

Nasdaq      67.88

SOX           66..77

S&P 500    66.67

RUT           62.72

GLD          44.51

XLE          36.74

It is very interesting to note that Solar stocks are top performing sector. 

Energy is the worst sector followed by gold.

Russell 2000 made the biggest gain and has shown relative strength which is a very good sign.

Nasdaq is on top thanks to AAPL AMZN FB MSFT to a large extent.

SO here we are, international and trade tension are @ center stage again.

Good luck with your own take of this market.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed