TAPE has gone into limp mode more so after Mexican Tariff announcement.
Most stocks were extremely vulnerable even before Mexican issue, it became another excuse to slump and violate technical support.
S&P 500, DOW & Nasdaq are all below 200 DMA, no sign of strength in most sectors.
Oil collapsing is another mystery, it is hovering near November 2018 prices.
Most strong stocks are in negative mode going below key support AAPL FB AMZN GOOG MMM to name a few, others have collapsed before like TSLA NVDA WB to highlight some names....
VIX is also troubling, as IF nobody is committed to buying protection either, VIX price action is also very sloppy and surprising.
Can you imagine RSI in S&P 500 is 30.84 and ready to go in 20 area....all is definitely not well anywhere.
Monday may continue in the same direction as Friday, market may try to give message to US administration to back off from Mexican decision.
Bearish scenario is developing very fast as worldwide slowdown is very evident from China to most economies.
Trade war is on between US & China having all kinds of repercussion for world economies, Oil slump may be related to this trade war which is intensifying.
Now US & Mexico is a new twist with a North American impact.
US & Iran are engaged in a never ending confrontation which may get out of hand pretty quickly.
Then there is US & North Korea ....less is said the better....lovefest in total inaction...
Gold may be an indirect beneficiary of all of the above US vs China / Mexico / Iran
It is important to see a broadening conflict which we are facing with a direct impact on world economies.
I do not see any resolution to 3 conflicts which US is facing anytime soon.
Good luck with your own analysis of world events and your comfort level with this market.
BLOG does NOT give buy or sell.
Saleem
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