Wall St. has done it! They have successfully bought the SP500 up to the upper resistance line. With the volatile month of May just days ahead, one has to stop and wonder if there will be some selling? This is most people’s opportunity to break even since the 2008 crisis and with economic numbers starting to stall globally it makes one go, “hmmmm.”
Here is the monthly chart. Buyer beware!
The S&P 500 is nearing its upper resistance line on the monthly chart. Two things can occur. First, the market powers through resistance and we enter a new stage of the bull market. Secondly, the market could find itself respecting this upper resistance line and start to roll over under the weight of itself. Stay tuned…
The chart paints the picture.
BAC has been in a classic stair step climb since beginning its journey last September. Volume looks good and the next stop should be $15.
AIRM has been a market leader in this rally. Price action has pushed the stock upwards out of a bull flag consolidation to new highs.
The US dollar index has put in a nice rally off of the neckline and the macd may get a bullish cross over in the next week. The equities remain in an uptrend and there is a lot of overhead supply in the dollar once it reaches 80.50 – 81.00. It’ll be interesting to see if the dollar can grow some legs and change into an uptrend.
A picture is worth of a thousand words. MACD has been bearish (below 0) since last September. Two outcomes are possible. Either the dollar bounces here and puts in one hell of a rally and equities roll over or we are getting ready to witness a stupendous rally in the equity markets with the possibility of commodities joining the party. There is also the chance of sideways chop for sometime going forward. No matter what happens this is about to get interesting.
Amazon sold off into earnings the past two days which hit my protective stop for a 3 point gain. I will have to reconsider this trade after earnings are presented after the close.
Google is preparing itself for new all time highs as the price action is hovering at a break out level. Google has been leading the market since this summer and is looking like it could be headed much higher. Here is the monthly chart going back to the ipo.
Now that Apple has lost its leadership as the most valuable company in the world Exxon (XOM) has now regained its title. The 20 year monthly chart paints a pretty clear picture.
The five year weekly chart shows a clear breakout and subsequent retest of that level as prices move higher.
The daily chart shows resistance at $93 which if taken out on volume should push to all time highs for the company.