Indices looking vulnerable.....

Indices are looking quite vulnerable as SOX have started its descend from lofty levels,

As the say....as goes SOX...so goes the market...

Here is a look @ RSI for analysis :

Nasdaq          75.63

S&P 500        72.28

TAN               65.31

SOX              64.85

DOW             61.26

RUT              58.83

GLD             47.10

XLE             45.47

Interesting to note that SOX has fallen from way above top position to number 4 in one week.

TOP position is for Nasdaq which closed @ new all time highs.

Number two is S&P 500 which also closed @ new all time high.

DOW is a distant number 5

Russell 2000 has been languishing as it stays in number 6 position for relative strength.

Bottom two are GLD & XLE.....

Some important reports are 

Monday           GOOG after close

Tuesday           AAPL & AMD after close

Earnings report are becoming a company event not a market event, which explains lackluster performance by many non-performing stocks.

Not all boats are being lifted or sinking with individual stock performance., negative or positive, it is a company event.

INTC and XLNX have done the most damage to SOX, many semis have been downgraded because of their weak guidance.

AMD on Tuesday close will further divide this market of good or bad report.

SO....market is very vulnerable to bad earnings now as leadership has shifted.

Good luck with your own interpretation of this TAPE.

BLOG does NOT give buy or sell.

Saleem