Indices deeply oversold.....

Last 18 trading days have a straight line slide into any rally, this selling started end of February that makes it 7 weeks of downtrend.

This is almost a reverse of what we were seeing in markets until February, a straight line UP move.

RSI used to be in 80++ of every strong stocks without any pullback, now RSI is in 30 for same stocks.

As history have told us that RSI of 30 is deeply oversold.......

Indices and stocks are hugging support area for a while, there is a strong possibility that we may bolt higher from here.

Only issue remains as to how China will respond to latest US tariff, i am expecting a tit for tat before open on Monday, that reaction in market may flush out remaining weak hands.

Monday may offer a very good entry point in many stocks for those, who were waiting for right moment.

Trade war is the only issue which is a huge negative for this TAPE......

Many things are going right for US and world economy.

Tax cut is a huge positive for US corporation.

Deregulation is also a plus for US economy.

Earning reports coming soon is also a huge plus as they will beat expectations again.

SO trade war is the only negative......

These malaise and negativity in markets usually comes after an extended UP move, which IS the case this time around.....straight UP market since US election, that needed digestive process which we may have completed or about to on Monday.

IF you are invested already, there is not much to do but sit tight for a " sharp reversal "

Good luck with your own analysis and comfort level.

BLOG does NOT give buy or sell.\

Saleem