Tuesday May 26, 2020
Today the DJIA jumped to 25,000 + one of the last two targets for the completion of the A B C Wave 2.
This was a bit less spectacular than last Monday. That day saw 600 and finally 900 up. today we were up 600+ all day and faded ab it to +529 by the end of day. It is harder and harder to imagine a reversal up here as strong as last Monday and today, both first of week days. But that happened Feb 12 and the markets reversed up after March 23. But I should have recommended long positions equal to any short for a market neutral position overall.
Tune in tomorrow morning pre market for comments. Thanks for reading the Market Perspective.
Looks like the 3000 area on the SPX is a major resistance. AD lines are starting to fall apart on the intraday charts. But even with today's small selloff, prices are staying way up in the upper part of the range. We are either getting close to a major selloff or a blow off top to 3140 area. I am still watching the top of wave two for an entry to the down side. Also keeping in mind that the markets are way overbought and the next wave down is overdue for sure. The past few weeks have reminded me of the old saying that the markets can remain irrational longer than a one can stay solvent. wink.
Posted by: A.M. Putman | May 27, 2020 at 11:39 AM
I agree Transports arebacking off and that index leads
Posted by: Dennis Elam | May 28, 2020 at 03:23 PM