Lower lows means trouble for US market.......

Indices have been taking out lows and piercing through.

Market outlook is extremely bearish.

Here is a look @ RSI :

TAN             27.45

RUT             28.04

SOX             28.74

S&P 500      30.40

Nasdaq         33.85

DOW            34.85

As you can clearly see.....all index / Indices are in deep oversold condition for a while...

DOW S&P 500 and Nasdaq are all below 200 DMA....

Nasdaq is the to far deep away from 200 DMA.

SO... what is the catalyst that can change direction ?

Earnings definitely are disappointing....so they are not the catalyst..

Interest rate scenario is extremely bearish, as much as 4 in 2019 and 1 more in December of 2018.

US internal politics is far from healthy, total divided nation...that cannot be healthy for economic growth.

Worldwide trade issues are still bogging down Chinese economy, which is slowing than consensus.

India is facing own challenges.

EU has to deal with Italy and Brexit...no agreement there either....

FB reports on Tuesday AH

AAPL reports on Thursday AH

Even IF they report better than expected, rally may be short lived as market trend is extremely bearish.

Bottom line is......stay conservative with less exposure, this " trend is NOT your friend "

Good luck with your own analysis and comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed