Is CHINA going to pull US markets down?

Chinese economy is hurting due to Corona Virus.

More cities are being closed down to prevent spread of this virus

Now it is turn of Industrial cities of CHINA to be locked down, this can have major impact not only on Chinese economy but worldwide.

US stock markets have been making series of all time highs while Corona Virus is impacting more and more people and Chinese cities.

US celebration of all time highs can come to screeching halt and may head south in a hurry.

Here is a look @ RSI of major part of US market :

Nasdaq          64.91

S&P 500       59.52

DOW            55.62

SOX             49.99

IWM            49.57

Test of 50 DMA already happening in RUSSELL 2000 where it is sitting @ 50 DMA, SOX is barely above 50 DMA.

Nasdaq, Dow & S&P 500 are further above 50 DMA and may have to join in testing support or penetrate 50 DMA.

Chinese economic impact is more than alarming, thus needs reset.

IT IS important to look beyond comfort zone of USA to get an accurate handle on impact of this virus where death toll have surpassed SARS already as we are in 800++ zone.

As long as as you are taking risk knowingly, that chance of going down have risen considerably in last 72 hours, there will be no surprise.

Good luck with your own analysis and comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed