Russell 2000 & SOX are deeply oversold.....

Last 5 weeks have seen relentless selling in this TAPE, reasons keep changing but reaction is always severe.

Here is snapshot of RSI for major indices / index :

Dow           54.70

S&P 500    44.53

Nasdaq       35.73

SOX           34.77

RUT           29.69

One can clearly see that all indices have come down sharply, some are deeply oversold like Russell 2000, others S&P 500, Nasdaq SOX are oversold. 

Dow is the only one that is healthy so far.....

Russell touched 200 DMA and closed above.

Nasdaq below 50 DMA

S&P 500 touched below 50 DMA but closed above

SOX well below 50 DMA

DOW well above 50 DMA

It is safe to say that we may have touched support on Russell 2000, SOX......

Other indices may go through their own test and may find support in coming days.

It may be a safer strategy to start switching into stronger behaving stocks.

Many stocks are behaving relatively better than most stocks into this selling, Chinese stocks for the most part have collapsed due to US China trade tension which is causing slowdown in Chinese economy.

Good luck with your own analysis and comfort level.

BLOG does NOT give buy or sell.

Saleem

Posted in: Mixed