Stocks Jump But Offer Little If Any Confirmation
Michael Kramer | May 19, 2020 12:14AM ET
Stocks had a good day recouping all of there loss from last week and then some. The S&P 500 managed to finish around 2955, but in a precarious spot. Again, these are merely the facts, look at them; however, you please. The index managed to close pretty much right on the lower trend line of the rising wedge from we identified over the past two weeks.
If the S&P 500 can push through that uptrend, then it stands a chance to race towards 3100. If it does, fail to push through that uptrend, then it likely looks to fill the gap and potentially more. I’m not saying it will or won’t. I do not know.
It would have been ideal for the RSI to push to a new high, to confirm yesterday’s gains, but it did not. Typically, that is not a bullish sign, but based on how things finished, I’d call it a push.
It would have also been nice for the VIX to make a lower low, but it did not.
Amazon (NASDAQ:AMZN) was also unable to push to a new high, and its RSI still suggests the stock heads lower.
Microsoft (NASDAQ:MSFT) also failed to make a new high, and its RSI is still pointing lower.
Apple (NASDAQ:AAPL) also failed to make a new high, and its RSI is also pointing to lower.
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Anyway, I’m not going to go through the others because they are unchanged. So while it is fantastic that industrial rallied yesterday, does it matter? Besides, the ETF failed precisely where it has failed three other times.
What does it matter Boeing (NYSE:BA) was up 13% yesterday when it still down about 17% from April 8
Then, of course, you have Wayfair (NYSE:W) which got smoked on Monday I said $122 the last time, I wrote, but I think I misjudged the gap, it should have been $134. What is $8, when there is another 13% or so potentially to the downside? Some breakaway gap, what a joke…
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