Strong earnings helped the surge of the 9-year bull market pushing stocks even higher remaining in the overbought territory for an extended period of time, longer than usual.
A correction was long due. In the cases of rapid expansion, the correction is even higher and last week it reached 10%.
The major indexes moved sharply lower over the past week. While RSI readings point to oversold levels, the MACD remains in a bearish downtrend for all of the major indexes.
Global equities came under heavy selling pressure this week, losing as much as $6 trillion in stock market capitalization. The tech sector took the biggest hit. The US Dollar appreciation pressured gold prices to the second weekly loss.
Crude oil prices plunged last week, the biggest loss since November 2016 after recent data reaffirmed investor expectations of rising US output, above 10 million bpd, which threatens to derail efforts by major oil producers to control excess supplies.
Super Thursday also gave signs for a sooner and higher hike of the interest rates in the UK as BoE Governor Mark Carney had a hawkish outlook for the UK economy. Brexit negotiations, on the other hand, have a major impact on the sterling where even the Bank of England Rate hike talks were proven not enough to save sterling from further losses.