Is pullback over......

Last week saw a fast pullback in all indices, here is the result :

Nasdaq         Down 3.52%

S&P 500      Down 3.83%

Dow             Down 4.06%

RUT            Down 4.21%

SOX            Down 5.46%

The above losses does not reflect how many individual stocks took a sharp tumble, many times more than index.

Rising interest rates were the main culprit plus overbought conditions did not help the matter.

Wages were rising @ fastest pace since 2009, 2.9% wage growth guarantees March hike in interest rates by Fed.

NOW the question is what will happen on Monday & Tuesday, technicals are telling us that there is a possibility that we go down further to 50 DMA in Major indices.......

Russell 2000 is already below 50 DMA.....

RSI in S&P 500 is 46.08......reflects lot of damage done already.....

There is hope that we may have seen the low or may test support further by going below low of Friday and find support.

No matter how TAPE performs on Monday, we are near bottom.......

These are the times when you look @ strong stocks to buy.....some of the strong ones are listed below :

BA AMZN NFLX FB NVDA CAT GS

Market will do what it needs to do in the near term, but we as experienced traders needs to do what we must do also...which is to buy after each severe selling.

No matter how we were adjusting to overbought conditions, we all got caught in this fast slump, market spares no one......

Good luck with your own analysis and comfort level with this TAPE.

BLOG does NOT give buy or sell.

Saleem