| Hello, Fellow ChartWatchers! | This past week, there was a lot to focus on—trade deals, earnings, and the FOMC meeting in particular. Thursday brought a burst of optimism after the U.K. trade agreement, with stocks getting a lift. Much like a caffeine high, the buzz wore off quickly, and the rally soon faded; the market ultimately wrapped the week looking a little wobbly.
Friday’s Close: - Dow Industrials: 41,249.38 (-0.29%)
- S&P 500: 5,659.91 (-0.07%)
- Nasdaq Composite: 17,928 (+0.00%)
Despite the lack of upside directional move in the major indexes, there’s a slight bullish bias simmering below the surface. The Bullish Percent Index (BPI), a breadth indicator, supports the bullish bias. The Nasdaq 100 ($NDX), S&P 100 (OEX), S&P 500 ($SPX), and Dow Industrials ($INDU) have BPIs above 50%, suggesting the bulls have the upper hand.
The Dow Industrials, in particular, is flexing with a BPI at 80%, although it edged lower toward the end of Friday’s trading (see chart below). It technically puts it in overbought territory, but looking at past performance, the $BPINDU could remain overbought for an extended period. Plus, as long as that BPI stays above 50%, the bias remains bullish.
Want other market analysis tools? You’ll find the above chart and plenty more in our Market Summary page. If you haven’t checked it out yet, now’s a great time. It shows the lay of the land across U.S. stocks, international markets, sectors, industry groups, bonds, commodities, currency markets, and even crypto.
And speaking of crypto, did you catch Ethereum’s ($ETHUSD) breakout move? If not, it’s time to make the Market Summary page part of your daily ritual. Frank Cappilleri spotted it in his article, Fed Watch: Key Bullish Patterns in the S&P 500, Utilities, and Crypto. We’re thrilled to welcome Frank to our team of contributing analysts. His sharp market insights are going to be a game changer.
We have a lot more articles and videos in store for you. You may as well spend a part of your precious weekend going through them, because this weekend may not be one to completely unplug from the market. China trade talks are set to begin, and depending on how things go, Monday morning could bring a little more than coffee jolts.
Stay curious, stay alert, and enjoy Mother’s Day. | | Enjoy your weekend! | | | |
| THIS WEEK'S ARTICLES | | | | | | | | | | RRG Charts | | The Best Five Sectors, #18 | | by Julius de Kempenaer | | Communication Services Drops to #5 The composition of the top five sectors remains largely stable this week, with only slight adjustments in positioning... | | | | | | | | | | | Art's Charts | | The V Reversal is Impressive, but is it Enough? | | by Arthur Hill | | Stocks plunged into early April and surged into early May, suggesting that a "V" reversal is in the making. There are two parts to the V reversal. First, there is the V, which is the plunge and the rebound. Second, there is the breakout move that completes the reversal... | | | | | | | MORE ARTICLES → | |
