May 1st Market Commentary
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.
- 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:
- 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):
- We had a euphoric price move that gapped up higher with New Momentum and Price Highs
- Â 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