Wednesday May 31- Back To Work

I spent much of Tuesday catching up on charts and various news articles that I may have missed over the long weekend.  After all was said and done, nothing has really changed in my expectations going forward. Let's review...

 

SPX - After a shake out below the 50sma and recovery 8 days ago, the markets seemed to have put in another dcl and are near all time highs. These small pauses or flags may just continue higher so...

 

I said in the weekend report that I personally would not be shorting this bull market, since surprises do keep coming to the upside.  That said, I am still keeping an eye on this...

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May 29 – Weekend Report

Trading is closed in the U.S. on Monday.  Here is your week in review...

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SPX -  This is from our Friday morning report. A week ago I mentioned that it seems that the slam down may have cleared the deck of sellers and put in a dcl. We still have had all right translated daily cycles in this run. Please read the chart.

SPX - We could get shallow pull backs at anytime, but a loose trailing stop can keep someone that is 'long' in position. A hard stop could also be placed under the 50sma, since that shouldn't be broken again for a while.  This is now a 3 month consolidation and a break out.

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Friday – The Oil Leak

Friday, the last trading day of the week.

 

Well, honestly the Oil leak that we experienced yesterday was no surprise to most of my readers.  I expected that drop and I wanted to point something out from here...

 

WTIC - This Doji was pointed out yesterday as a topping candle. We had an OPEC meeting that would review possibly continuing with cuts. Could this drop if they agree to continue with the Oil cuts?  Yes, it was due and even though OPEC agreed to continue with the Oil cuts, Oil sprung a leak.

WTIC - One thing that I want you to notice is that often when OIL has that one big 3 or 4% slam day ( see red arrow) ,  it doesn't usually bounce like many other sectors do the following day. It may bounce  intra-day, but often that OIL SPILL  just continued to sell off day after day in the recent past.  Oil is overbought and has plenty of room to run lower.  Thursday  DWT, DRIP, DUG, and ERY were all great trades from that DOJI top at the trend line.

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