After 5 weeks of pullback, now what......

Indices were in a corrective mode for last 5 weeks, many issues impacted trading, first Yen surge, then oil climb, then oil pullback, then Fed interest hike fears......all that resulted in following :

S&P 500 lost from high to low 4.03%

Dow Jones lost from high to low 4.60%

Nasdaq lost from high to low 5.85%

Russell lost from high to low 6.06%

These are meaningful pullbacks and based on 5 week duration, it was the longest stretch of digestive phase.

Inflation worry, growth worry are the key catalyst for uncertainty......

World is adjusting to slow growth and minor uptick in inflation based on prices and wages.

In Asia, inflation is moderating in India & Pakistan, much lower than record inflation of several years or even decade.

TAPE has discounted current burning issue of Fed interest rate hike in June.

Expect a buy in anticipation and then further buy on the news.

Any jittery selling should be a strong buy 

RSI in indices in mid 40's are in the lower end of the range, which should give comfort to traders and investors.

Oil & Gold has stabilised which confirms slight inflation and growth worldwide.

Expect major new inflow in the market....

Many doomsters will change their tune once we start moving higher and make new highs.

Exposure should be near high based on your own comfort level.

Good luck with your own analysis.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed