Indices looks oversold......

Indices have been oversold due to latest crisis of Turkey and its impact on Turkish Lira which has been clobbered.

Here is RSI on key index and sectors :

GLD             31.07

XLE             36.60

SOX             36.88

Nasdaq         52.29

RUT             54.38

S&P 500      58.75

DOW           61.68

Technically GLD & SOX are the weakest both below 50 & 200 DMA.

XLE is a tad better above 200 DMA but below 50 DMA

RUT and Nasdaq hair above 50 DMA

As is clear from above RSI numbers Dow is the only index which is in healthy territory....

S&P 500 is second best index.......

Nasdaq weakness is very surprising, it is mainly because of uncertainty in trade between US & China.

China & US have announced that they are meeting to resolve tit for tat tariffs, even after this announcement, there was a very weak rally in Nasdaq.

Chinese stocks have suffered extensively in this China / Trade related selling and are trading near lows.....

BABA is reporting this week on Thursday before open, hopefully a good earnings report will dispel weakness in Chinese local or regional economies where BABA operates.

I am hoping we dig out of this technology slump, and move towards normalized valuation.

Good luck with your own analysis and comfort level.

BLOG does NOT give buy or sell.

Saleem