Why Markets are so WEAK ?

It seems that markets have lost its momentum big time ?

All indices are still below 50 DMA.....

RSI numbers @ close are :

Nasdaq 37.41

S&P 500 42.53

Dow 43.93

SO...everybody feels negative about markets prospects going forward ?

IS that a fair statement considering where we have been & what happened in last 4 weeks ?

IF we look @ challenges / horror we faced in Japan, then we MAY not view everything in the same light......

Japan gave us TRIPLE tragedy of Earthquake of 9.0 magnitude which is 5th strongest in recorded history & biggest in Japan. Then we had Tsunami followed by Nuclear scare...........

IF you consider Japan which used to be #2 economic power now #3 behind China...economic implications are enormous......

Technology is being impacted severely by Japan as many tech productions are in Japan which have been affected by this TRIPLE tragedy......

Nasdaq is clearly signalling that Japan will IMPACT tech Sales & Earnings materially.Once this has been discounted then we will move higher in Nasdaq.....

IF we look @ close today in Dow & S&P 500 we are looking better "technically" which should cheer all of us.......

Dow & S&P 500 are "withing striking distance of going above 50 DMA "...Dow is only 156.82 points away...S&P 500 is only 23.63 points away......

This has been TOUGH 4 weeks in markets, everybody has suffered serious loss in equity BUT we need to REFOCUS & REPOSITION in non-tech areas in short term......

There are MANY stocks which are ABOVE 50 DMA as of close, which is remarkable for this market. Here is the list of those stocks with their closing RSI:

PCLN 46.65
CMG 47.05
ARUN 56.32
EBIX 59.60
BIDU 50.37
SINA 52.05
NTES 48.66
TZOO 56.29
NFLX 49.99

Ironically they all fall in "tech sectors" which is the WEAKEST.

SO...look @ your portfolio & try to DIVERSIFY better.

Hopefully, we MAY have "extremely positive " news out of Japan about those nuclear reactors by Monday open.

Good luck with your OWN homework.

BLOG does NOT give buy or sell.

Saleem