I wanted to start the weekend update with a few non-confirmations that occurred on Friday. The Transportation Index (60 minute chart) actually was up on the day. It did not confirm with a lower low like the Dow.
The NASDAQ (60 minute chart) did not confirm and guess what other sector did not confirm with a lower low ... Financials.
Only the S&P 500 and the Dow made a lower low on Friday. Also, the ETF for the S&P 500 actually had a net inflow of cash on Friday of just over $77 million while the rest indexes had outflows of cash. Just not that much conviction to the down day on Friday. I would not be surprised if we see a little strength in the next few days ... no guarantees ... anything could happen. This is based on the above short-term indicators. Usually stocks are very weak post Memorial Day Weekend ... especially so the last three years. I would not be surprised if the market floats sideways or moves up a little here over the next few weeks.
The Dow Jones Average had a net outflow of cash on the day of $1.2 billion and for the week an outflow of $600 million. The % volume down was 80% on the NYSE for the day but the NASDAQ down volume was only 60% of the total traded Friday. Still a contrast between two markets. This is going to be interesting to see what occurs. The last time the NASDAQ did not confirm a lower low or a new low ... the market rocketed upwards for more than two months. Volume was lower on the day on the Dow ... if the volume remains weak or weaker on up days compared to down days ... then watch out ... this means there are no new buyers in the market.
I'm closing with a weekly chart of the Dow. All indicators are overbought. Remember these things can stay overbought and even move down while the market continues higher. If you are still long the market ... protect your profits with a stop.
I wanted to start the weekend update with a few non-confirmations that occurred on Friday. The Transportation Index (60 minute chart) actually was up on the day. It did not confirm with a lower low like the Dow.
The NASDAQ (60 minute chart) did not confirm and guess what other sector did not confirm with a lower low ... Financials.
Only the S&P 500 and the Dow made a lower low on Friday. Also, the ETF for the S&P 500 actually had a net inflow of cash on Friday of just over $77 million while the rest indexes had outflows of cash. Just not that much conviction to the down day on Friday. I would not be surprised if we see a little strength in the next few days ... no guarantees ... anything could happen. This is based on the above short-term indicators. Usually stocks are very weak post Memorial Day Weekend ... especially so the last three years. I would not be surprised if the market floats sideways or moves up a little here over the next few weeks.
The Dow Jones Average had a net outflow of cash on the day of $1.2 billion and for the week an outflow of $600 million. The % volume down was 80% on the NYSE for the day but the NASDAQ down volume was only 60% of the total traded Friday. Still a contrast between two markets. This is going to be interesting to see what occurs. The last time the NASDAQ did not confirm a lower low or a new low ... the market rocketed upwards for more than two months. Volume was lower on the day on the Dow ... if the volume remains weak or weaker on up days compared to down days ... then watch out ... this means there are no new buyers in the market.
I'm closing with a weekly chart of the Dow. All indicators are overbought. Remember these things can stay overbought and even move down while the market continues higher. If you are still long the market ... protect your profits with a stop.
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