Overview of Major Indexes
We have survived this ‘heavily ladened’ week of economic reports, and the S&P along with the Dow Jones have made new lifetime highs. Such action is impressive when reports indicate that first quarter GDP grew at 0.6%, or the worst reading since 2002. We still have one trading day ahead of us before the weekend.
Dow Jones
- We are making new price highs, yet momentum (both 3/10 MACD and Stochastics) are clearly diverging now with price
- Volume on the last 3 up-days was clearly decreased – consequently, volume on today’s ‘down’ day was markedly increased
All indexes are showing clear and present momentum divergences. A divergence is no reason to run for the hills and short, but it is a yellow light of caution.
Here’s a bonus chart of AAPL (Apple) which has absolutely been on a roll since late April. It is now making new momentum highs.
Study well.