May 1st Market Commentary

May 1, 2007: 9:07 PM CST

The Dow Jones made yet another all-time closing high today, while the Nasdaq failed to confirm.  Although both indexes ended higher, the day’s action was choppy at best.

dow-may-1.png

  • Notice the creeping and solid uptrend
  • Notice New Momentum Highs confirming New Price Highs, heralding higher prices are likely to come
  • Notice the solid uptrend on the red 3/10 MACD oscillator
  • It would appear we are ready for a sell-signal, yet oscillators fail in strong recent trend action

Chart of the Nasdaq:

nasdaq-may-1.png

  • In the most recent swing high, the 3/10 oscillator failed to make a new high – it’s just a warning
  • Price recently ‘tagged’ the rising 20 period moving average – a buy signal
  • Most recent support is confirmed at the rising 20 period moving average
  • The Nasdaq had a strong sell-day yesterday, rinsing out some of the excess and clearing for possible new highs
  • The trend still creeps higher, warning shorts to stay out

As a bonus, here is a recent chart of market leader Apple (AAPL):

aapl-may-1.png

  • We had a euphoric price move that gapped up higher with New Momentum and Price Highs
  •  Odds favor greater continuation to the upside after a fresh retracement
  • Support ‘held’ at the rising 50 period moving average recently
  • We appear ready to experience a corrective downswing for a possible trend entry signal
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