i'm going to pick the rsi chart. it is compelling.think you would be very close, but it should have been always in october to get down to these levels. yvonne: i have to try that. >> unless we move into next year, then there is more problems. david: that means we will do it again. tom schroeder, thank you for coming in. yvonne: [laughter] we have to do this again. i'm ready for a rematch. tom, thank you. on can access those charts the bloomberg. this is bloomberg. ♪ emily: i am emily chang in seattle for the geekwire summit. this is "bloomberg technology." coming up seattle is home to , tech behemoths like amazon and microsoft, but with a small venture capital community, can they set the stage for the next amazon or microsoft? we will discuss. plus, boeing's skyhigh ambitions. we will hear from the ceo on ei

a blow off top if you think about the velocity and the speed, the s&p closed in a nine-day rsi of 9.7. it's the lowest on the s&p since 2001 i'm talking about not the financial crisis it sells you how overbought we were and how violent this was. i think people are still complacent frankly. >> that's the risk, right. being up today is that bullish, giving the bulls hope? it's the worse that could have happened np what we want is a another 3, 4% down then you can have the cath art arsis. and people are like i didn't act. >> we did -- we did have a 400 point reversal today but you're talking. >> dropping 5%. >> there have been 300 five% plus corrections back to 1927 used to happen all the time. this is nothing. we want it to go down. >> okay. it did go down is what i'm saying the market opened strong i hate a big giant open where it just is levitating and then it really gained steam on the downside. and that was a 400 plus point reversal to me the bullish part -- not where we opened is it's the rallying off the bottom. >> why is that complacency. >> maybe that's a sign people got too neg

another one people like to use is the 14 day rsi. when you see extreme readings over three standard deviations from the 50 day moving average or and rsi reading in the mid-20's, those tend to be pretty strong moments of selling that cannot be sustained. at extremenot drop high percentage levels on a sustained basis. especially when the global macro backdrop is not negative. there is risk and concern about slow growth, but the whole of the economy looks in pretty good shape. to see massive position clear out, you get these sharp drops but they tend to not sustain themselves because it is positioning driving the market as opposed to a fundamental reevaluation of where the global economy is and so forth. scarlet: you make a good case for why we might have turned the corner, but sarah, earnings season started today and they are pretty good overall. george: a lot of -- sarah: a lot of people were looking for the saving grace today to be the saving grace. if people were hoping earnings would be the saving grace, that was not the case. jpmo

we have seen higher lows in the rsis you can have lower prices did you decreasing rate of change.be a scoop aaron, add technicals into it and i know you can do it don't be afraid of it i like the idea getting weaker here is netflix unfortunately i think netflix looks terrible we have a head and shoulders top here not looking good the next line is right along the lows here. if you breck this net flex unfortunately you got to change the channel on net flex. this is not healthy, not a name i would be looking to scoop. finally look at alibaba. even before the last two days of technology selling agy and china has been week. fxi couldn't get a bounce. alibaba, that kind of head and shoulders pattern i mentioned has played out the breakdown was right around here we came back to re-test resistance held. which should have been support that name -- you can't is sell it now but you don't want to buy it i think the chinese names, asian equities are a big reason we see pronounce the technology selloff. >> todd, thank you todd gordon of trading analysis. grasso i know you've been a fan of aliba

we just saw the asx 214 they rsi here is sophie kamaruddin.moving into oversold territory, that pushed valuation to three-year lows so this might be supporting the rebound we are seeing this tuesday. materials helping to lead gains along with financials, which did edge closer to bear market territory on monday, but we are seeing some relief for that space for now at least. weakness coming through in tech and health care shares. while we are seeing green shoots today, the market is expected to suffer more at least in the short-term according to some strategists. tribeca investment partners expects sideways trades in the china'smarkets and economic slowdown, which will keep writing banks as well as minors. stocks under pressure. some health care names are -- of the stockn some movers in sydney, i want to highlight sims metal, after announcing a share buyback for up to 10% of issued capital likely to happen after the agm take place on november 8. gold minas harrison gaining ground after maintaining its full-year guidance. rio tinto adding 1.4% af

the rsi, that is there in the bottom it is still not quite oversold which means the chart isn't signaling a bounce my oscillator says otherwise let's check out the nasdaq 100 longer term monthly chart. lang says the momentum is weak and has the volume has been rising suggesting that there is more pain to come the mac d has made a bearish cross over is the nasdaq 100 oversold he says not even close the relative strength index is in the middle, as a matter of fact you can see it is closer to overbrought than oversold right now and what happens about small caps stocks? there is so much damage here it is scarey. this index is clearly the worst. it is already broken down below its 50-week moving average mac d indicator rolled over in september. and lang point outs that the volume here has been rising with heavy selling. meaning big institutions as for the russell 2,000 longer term monthly chart, lang wouldn't be surprised if it moves down to its 50-month moving average, down 10% the mac d indicator giving this bearish cross over he thinks this tells you all you need to know about what is going

dado, rsi call him tex kennedy, you do not want to drive. you're just lucky us in texas where there's no pond to drown his girlfriend in. gets hammered at age 26. the platoon leader in a war. right, he gets hammered, goes into the other lane and then start to run away. this is undisputed, he admits that. doesn't admit he ran away. now he admits he was hammered in the admits he was driving. the whole thing is coming out, but when i was drunk driving animals killed a bunch of people i stayed right there when the cops pulled me over. so that's better. why is that -- kavanaugh is being disqualified in beta is undisputed. it's a free country. you can have the opinion of kavanaugh did that i want supreme court. i'm not going to argue with you. you can agree with that or not. what you can't disagree with honestly is that there are two big rooms here. did you hear that? believe all the women except that whining republican -- corey booker. new jersey coming up strong in the idiot senator wayne. i mean, it just goes on and on. it almost seems like the

the level of positioning since january and then we went to extreme oversold talked about the nine-day rsi lowest on the s&p since 2001 how oversold were we dramatically when you can't necessarily see the china trade rolling into the numbers we are not seeing the impact of china until does at best and therefore i think a lot of this is just a mirage for people but to me it's all about positioning and sentiment i don't think the sky is falling i think the market is fairly valued at a time when we said earlier in the show -- guy talked about it we all talk about it come on when it's up 50 oh points orp feel like it's gone away would be disingenuous. >> do you sell into the rally? are at a we that. >> no. >> are we questioning this to the point to say use the bounce to take profits. >> i have seen this act before without question process we talk about every time it sees limis it's over and skis something happens and bails it out. this is the movement over and over again can it last a couple more adays? absolutely but in terms of the hit nds they haven't gone away. >> they haven't. but think a

. >> i want to mention amd this is a stock that broke out above 20, screaming higher rsi is off the chartsf. i think it's setting up. >> new high for the dow. power lunch starts now >>> i'm melissa lee, fed chair powell getting ready to take questions about the american economy and rate hikes ahead, we will carry that live he predicted the housing crisis, legendary value investor will tell us what is keeping him up at night, whether this record rally still has legs where he's putting $120 billion that he manages to work right now. tesla hitting delivery targets the stocks taking a hit. we'll tell you what is worrying investors now, new fears about the housing market the risk of mortgage fraud is soaring.

rsi on the s&p during this bout of selling actually got as low as 17, bananas, 30 is currency oversold long story short i think we have already had a very, very big washout we should get the big oversold rip perhaps this morning we are getting it 3:00 has been a selling hour if that changes today -- big picture, scott, we have not had two back to back days of upmarket in 28 days. that's only happened six times signs 1960 if we can break that cycle and get two up days, people get more krkt corrective. >> we haven't had back to back gains in a month joe. facebook is down 25, facebook, 27, alphabet 34, and month to date, i mean the carnage is unbelievable facebook down 14% this month amazon and netflix are matching the move from their lies not that long ago they were at their highs. is this the moment have they bottomed >> i don't think you can say they have bottomed right now on october 30th first of all tomorrow is the end of the month. we will see what happens tomorrow next week we are going to have an election with an uncertain outcome. then you are going to follow that up with the po

charts,ws you the top the stock price and on the bottom the rsi, just past the 70 level.t stocks and quan's and cpa's piling in. what is going on? guest: it depends who you ask but when you talk about gdp and spend numbers driving, it has been good. in the second quarter, japan's economy grew at the fastest pace in two years. if we had the gtv chart, i can show you the business sentiment has fallen. you have these large manufacturers worrying about trade concerns. caroline: consumers going there with retail up but some businesses are worried. watch her at daybreak us trillion and daybreak asia. go to the national business economics conference in boston. joe: i will be looking at auto sales, gm, ford, chrysler, fiat and others revealing their monthly numbers tomorrow. caroline: that is all for what you miss. joe: bloomberg technology is up next. this is bloomberg. ♪ emily: i'm emily chang in san francisco. coming up, elon musk's settlement with the ftc. he is out as tesla chair and he combined will pay a $40 million in fines. we will look at the road ahead. instagram has a

here, you see the rsi, a technical indicator of the relative strength.it is down to oversold for the first time since march. interesting thing is if you want to try and take out the are the brexit, if you person who believes this thing always goes down to the 11th hour and will probably get dragged on after that but will never have a positive or negative outcome of, you can buy the ftse at this level and hopefully make some money and it will bounce back. nejra: matt, i love your chart and did love the relative strength index, but i will go for dani burger because she showed more of an insecure spread and also key questions for the market right now is whether and when to get back into equities after the selloff. both great charts, but dani burger is the winner. thecan see both charts on bloomberg by running gtb go. a couple of headlines, donald tusk, to reiterate the eu 27's. or for barnier's work as we have the brexit negotiations this week. tusk meeting with barnier at a critical moment of talks. that is it for the european open. ♪ francine: damage cont

dividend yield, investors wanting safer companies and rsi companies that have been shown to do well over days. momentum, those two strongly correlated, so no surprise it is up. looking at the downside, the exact opposite. some of the more risky factors selling off today. one-month volatility, the most volatile stocks in the last month. down over 3%. chunkyvalue, big, quantitative styles a lot of people own, selling off over the last week, nearly 2%. this is evidence these have been very volatile, moving around the market a lot. i want to take you over to the charts, to show you exactly what momentum has looked like. i said momentum was up last week. however, it has been declining back and forth a lot, and now the momentum is hitting its most volatile price moving in two month volatility terms in two years. this is troubling for a lot of investors, because these factors are dominating markets. if we see factors like momentum get volatility, that means the underlying market is likely to be volatile as well. matt: dani, thanks very much. markets reporter dani burger with the ftw function on

and so i don't have any ieds rsi funny come into carrie meek turkey is being carried over the line withot of outside money. he doesn't have a strong -- >> we want to get to all of this. ms. harkey, who has been the best president in the united states ever? harkey: oh, my goodness. we had a lot of really great ones. i think it when lincoln was definitely one of those, that he stood the line, gave a probably a big part of his life to set this lace free and to try to make some unison in the country. levin: we agree on this. i thought graham lincoln was asked would under which the current republican party would more embraces legacy. >> should we reformed electoral college keep it as is. levin: i think should be reformed. i think it is -- >> go ahead. harkey: it serves its purpose and don't think there's anything wrong with it. i think when you lose an election you get upset but it is what it is. >> what is the biggest military threat the united states faces at the moment? harkey: probably military threat. i would say you've got, i mean, there's a lot of cold wars right now so i would say ma

rsi for the nasdaq hit 18. anything below 30 is oversold. 18 is extreme oversold levels.have not seen an 18 reading september 21, 2001, so the recent selling has ton more volatile since 2008 2009, more par 4 than the flash powerful than the flash crash. it is slowing and starting to ease. yesterday as the nasdaq retested not at a new low. pressure,till i selling but not as strong. bottoms are made with these positive diversions is. we are saying we are closer to a bottom than october 11. alix: thank you so much. less bad is positive. david: a warm feeling. fundamentals. the we just heard about the technicals. tell us your attitude overall to the market. after yesterday, do you say valuations are cheap and it is time to get in, or a time to sit on the sidelines? trading 17 times earnings. a year ago, it was 19 times earnings. the stocks have traded water over the past year, while earnings have grown substantially. you have valuations more on your side. pick, hard to bottom but 5% or 10% pullbacks not accompanied by a recession tend to bounce back quickly. david: what cause

we've seen dramatically oversold conditions look at the rsi. look at these two week indicators when you're way overbought when you're over 70, when you're in the low teens, when 40% of the s&p is in the low teens that's like several standard deviations away from normal markets and historic norms you don't see this very often. it doesn't continue like that for very long so the market right now is telegraphing -- i think we'll get a bounce but the market is telegraph ago big problem with earnings and i'm talking 2019 earnings. so revenues about 6% but the market is telegraphing, they don't believe it. the market one month ago was 16.5 the multiple is the price you're willing to pay for a future stream of earnings the multiple decline is telling you they dent believe the 2019 numbers. what is the real number? i don't know it's half that, maybe we're only thinking 4% or 5% instead of 9% or 10% like people anticipating the analyst numbers. that's a significant hair cut and i think that's the problem we've got right now. meantime, you look at the yie

if you look at either the kb or kre, its weekly rsi chart is getting oversold the last three times itnced very sharply. the smallest bounce was 38%. they're also approaching their 200 week moving averages, which provided great support back in 2015 over, the thi it's a midterm election year i think that the groups that are beaten up that are washed out are the ones that are going to do the best. when the rest of the market washes out, i think this is one you'll look good at. it will be a good group come december. >> contrarian play there the fundamentals haven't much changed and people think they're okay if the stock is cheap enough. >> there's been nowhere to hide. everything's gone down there are so many distractions if you look at the fundamentals of the group they're there we think there's going to be a sector rotation from the high fliers, the low earnings into the companies that can make money. the biggest question in this space is will economic growth continue but valuations are very attractive i mean, the sector is trading at ten times next year's earnings you buy companies lik

. >> i want to mention amd this is a stock that broke out above 20, screaming higher rsi is off the charts, now it's cooling off. i think it's setting up. >> new high for the dow. power lunch starts now >>> i'm melissa lee, fed chair powell getting ready to take questions about the american economy and rate hikes ahead, we will carry that live he predicted the housing crisis, legendary value investor will tell us what is keeping him up at night, whether this record rally still has legs where he's putting $120 billion that he manages to work right now. tesla hitting delivery targets the stocks taking a hit. we'll tell you what is worrying investors now, new fears about the housing market the risk of mortgage fraud is soaring. it's not the banks, it's the bore roarers, power lunch starts right now. >> welcome to power lunch. the rally is rolling on, the dow up for a fourth straight day posting its all time high in more than a week intel, caterpillar, wall greens those are the ones fueling the gains. retail, bang, smackdown, the etf projects they are on the worst pace for more than a month th

you look at it's weekly rsi chart. it's getting down to levels where you usually see balances. problem is it's been seeing a series of lower lows for many months now so it's going to be tough for this thing to really bounce back, especially if we don't get a move on the dollar the inverse correlation with the dollar has been strong for a while. unless the dollar comes down and there aren't signs of that right now, it's going to be tough toorto be overly aggressive china, the one thing, it's down near key support level the chinese, they are known to support their markets. they know if it breaks below that level it could cause a watershed movement, so i think this is an area where they can be supporting the markets. if you want to take a little more aggressive move, it would be in the chinese stock market rather than the others. >> all right yeah, maybe the hardest hit could be the first to recover. mark, from an investor's perspective, where do emerging markets have a place in a portfolio? >> long-term investors can't afford not to own emerging market stocks. emerging market con