Is the correction over ?

Market just went through a "swift rollover" which pierced 50 DMA in all indices.

Here is the summary of Market TAPE in two popular indices :

S&P 500

High 1344.07
Low 1291.99
Close 1304.28
50 DMA 1301.75

@ lowest point today S&P 500 lost 52.08 points or 3.87%

Nasdaq

High 2840.51
Low 2689.41
Close 2715.61
50 DMA 2745.92

@ lowest point today Nasdaq lost 151.10 points or 5.32%

Dow & S&P 500 closed above 50 DMA, while Nasdaq is still below.....which is quite healthy that two index climbed above 50 DMA....

News of today was quite disturbing from Japan, but market was looking @ the bright side of dropping Oil prices and upcoming rebuilding effort......which boosted many mining stocks also.

IF we look @ the correction in S&P 500 & Nasdaq, they attained norm of recent pullbacks as analyzed above.....which is saying that 3.87% / 5.32% pullback is what we got last time also +- few points.....

In my analysis of TAPE, how we close is always critical. Today's close was quite encouraging based on technical condition & news flow. It looks like that downside is contained for now.

As you may have observed that those stocks @ higher RSI last night as a group fared much better today in turnaround.

So the moral of the story is, that RSI do matter if you are looking @ critical decision making scenario.

Selling weaker stocks are always a no-brainer.....

Here is a list of stocks which are looking stronger :

BIDU,RVBD,RIMM,PLCM,AMZN,AAPL,
NFLX,SLW,MOS,SOHU,MA,V,TCK,CREE,
SU,ARUN,EBIX,IGTE,CIEN,FCX,MU,LULU.

Good luck with next week trading.

Next post Monday around 1 PM.

BLOG does NOT give buy or sell.

Saleem