Indices may slump @ open ......

Indices may be under severe pressure on Increasing death and hospitalization due to Corona virus. Many countries are reporting patients Canada, Australia, Nepal, plus 4 in USA......

China reporting increasing number of death and patients on an hourly basis, so far fatalities are confined in China.

There is a very good chance that by close, we may see stabilization in US markets.....off the lows is my hope....

My optimism for better close is based on RSI projection which is already heading 48 in Russell 2000 others may get there intraday.

Here is RSI reading as of Friday's close :

IWM            48.88

DOW          57.85

S&P 500     61.57

SOX           63.99

Nasdaq      67.27

When our indices hit 50's in RSI I am hoping for stabilization.....

This is the week of earnings when all famous technology companies reports, most may have strong earnings.....

By tomorrow PM most stocks may have given up their super sized gains.....thus better tone after earnings.

Do not overreact to news flow, it may be discounted in a hurry.....

Having a diversified portfolio always helps....

Chinese stocks are impacted by 11 city shutdown and curb on New Year travel and celebration....

Have some low RSI stocks in your portfolio, that may dent less than extended stocks.....

Good luck with your own understanding of this crisis and your own comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed