IS US stock market ready to breach support.....

US stock market has been fighting an uphill battle due to COVID-19....

After making new all time highs as recently as 4 trading days ago in Nasdaq, things are not looking well.....

Nasdaq made new all time highs 4 trading days ago because US economy was all set to make a gradual recovery.......

Thanks to lack of leadership @ the highest level in USA and many other politicians, COVID-19 is an issue again.....

Encouraging & conducting mass rally was the last thing you expected when infection was not contained......

That may have decided the next US election as most educated and silent majority are horrified @ lack of seriousness in dealing with deadliest of virus this world has ever seen, which has engulfed every country on this planet....

Unless we see a major reduction in infection, US markets are ready to take support out in Russell 2000 S&P 500 & DOW......

Nasdaq & SOX who are showing golden cross may survive breaching 50 DMA....that is the hope to save total rout......

Based on the above scenario, it may be wise to reduce exposure until we see Nasdaq & SOX held their support.....

Sometimes it gets uglier than expected, so be prepared to trim / lock profit to be on the safe side.

IF things go better than expected, then you can buy back / increase exposure.....

Good luck with your own thesis and comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed