Nice 4 day rally for indices.....

Market got many good news last week from deeply oversold conditions.

Mexico & USA agreed on last irritant on trade and we may rally on Monday...

Here is numbers for rally from bottom to close on Friday :

Nasdaq gained    6.17% from low

S&P 500 gained 5.3% from low

DOW gained      5.20% from low

SO Nasdaq outperformed S&P 500 and DOW

Only S&P 500 closed above 50 DMA

Here is the RSI numbers for key sectors :

DOW       56.62

S&P 500  56.31

Nasdaq    51.75

SOX        48.52

RUT        46.98

On this table, one can see that DOW & S&P 500 with upcoming rally on Monday may be vulnerable to profit taking.

Nasdaq SOX & RUT have more room to run, so funds can be routed from DOW & S&P 500 to Nasdaq SOX & RUT....

YES..it was a very good week for all participants, with above average exposure in the market.

IF we can get some movement on US China trade impasse, it will be extremely bullish for all sectors.....BUT...that may be just a wish for now....

FED has been shifting its policy rapidly to deal with falling interest rates all over including India.

Markets are loving FED's looking @ lowering Fed funds rates sooner.

Tension between US & IRAN is shifting to negotiations instead of threats and counter threats, another positive for the market.

SO...we may be looking at more positive developments from G 20 meeting also.

Who said, we cannot have more than 1 good news in a week, we got many last week and counting..

SO..all seems to be moving in right direction, BUT do not forget to book some gains on Monday..

Good luck with your own analysis & comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed