Indices all set to recover from AVGO scare.....

Indices are all set to recover from AVGO downbeat guidance due to close linkup with HUAWEI.

S&P 500 is above 200 & 50 DMA

DOW above 200 & 50 DMA

Nasdaq above 200 but below 50 DMA

SOX barely above 200 & below 50 DMA

RUT below 200 & 50 DMA......

As you can see from technical strength focus, S&P 500 & DOW are technically healthy.

Nasdaq below 50 DMA, struggling due to semiconductor weakness.

SOX got the kick due to AVGO downbeat commentary

RUT is the weakest sector below 200 & 50 DMA

BUT there is hope this week...

Retail remains very strong RH LULU to name a few are doing extremely well...

FED is expected to announce this Wednesday around 2 PM that they are all set to reduce interest rates, markets will rally in anticipation of this market supporting focus.

SOX is expected to stage an oversold bounce which may be a sharp reversal to the upside.

SNAP MTCH remained strong despite technology slump.

SO relax and do your own SOX focus picks, they are deeply oversold, I did just that with double purchase of AMD...now AMD is my largest position.

Markets get oversold quite often and all stocks take a beating on isolated news, SOX suffered just that last 2 trading days......that presents a unique buying opportunity, that is where we are.

Good luck with your own analysis and comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed