Will Indices test recent lows......

Only 6 trading days ago, we slumped to lows matching October 2019 lows.

All indices are struggling below 200 DMA , DOW being the-worst which is way way below 200 DMA....looking worst among all indices.....

Nasdaq and SOX are above 200 DMA....which is comforting...so far....

Corona Virus news is getting more and more attention with death & infections on the rise.....

Over 105,000 infected and close to 4,000 death......worldwide......

China Korea Iran Italy are the hotbed of increasing number of death.

It is NOT the absolute numbers worldwide, but it is the enormity, almost 100 countries infected globally which IS causing major alarm bell...

When psychology of fear and unknown takes over, then rationale analysis do not hold water.....

Market IS stuck in ' fear of unknown "

That kind of " hysteria " can take these indices below recent lows.....

On the other side, we got a friend in Central Banks / Reserve Banks worldwide all cutting interest rates aggressively and willing to go to ZERO  or even NEGATIVE IF need be......

Never fight the fed mantra may neutralize some fear of unknown.....

Based on all of the above, It IS NOT about RSI or oversold conditions which we do have, but it is all about " news flow "

Russell 2000 has 29.90 RSI on the low side and SOX has 39.82 on the high side...I never thought I will define high & Low RSI with these numbers.....

Most of us are spectators in this fast moving news flow which directly affects stock price movements.....on a minute by minute basis.....

SO...keep your high comfort stocks with patience and WAIT for news flow to go in the background, then only normal TAPE will return.

Good luck with your own analysis and comfort level

BLOG does NOT give buy or sell.

Saleem