SOX telling us something about market?

Except for financials, most sector index pulled back last week, a much needed and healthy pullback.

Most sector snapped back after 3 day of minor pullback.....

BUT.....SOX is in a tailspin and is down 5 straight trading days......

SOX did not show green even on Friday.....

NOW...we have Thanksgiving shortened 3.5 days of trading this week.....

Most traders and Investors are wondering what is in store this week....

RSI is looking little more appetizing than previous week when it was flashing major caution, here is a look @ RSI :

XLF        69.34

SPX        66.87

DOW     65.32

Nasdaq  65.02

IWM     57.58

SOX     51.72

As you can clearly see that we are not down enough in S&P 500, DOW & Nasdaq, while XLF is high.

Based on pattern and where we came from, It may be healthy IF we get couple of days of pullback.

IF we get much needed pullback to reset euphoria, It may be a good idea to get back in winners.

Strong stocks have outperformed and there is every reason to believe, that they will continue to do well going forward.

CHINA  & USA continue their fight for better trade deal and may create better and better entry point.

Most observers have concluded that their is no urgency for US or CHINA to push for a deal now....

Hong Kong and Impeachment politics may also contribute to delay in any deal making till 2020...

SO...stay on the sideline with limited exposure and wait when trade agreement is signed sealed and delivered, tweets / statements does not cut it anymore....

Good luck with your own analysis and comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed