5/30/2018 Markets recover yesterdays losses. It looks like a bear-trap for the QQQ, DIA, and SPY.

Fun Fact #55

A 529 plan is a college savings plan where money is put in post-tax, and then the account grows tax free!  This is similar to a Roth IRA.  


Market Stocks 5_30_2018.PNG

My targets have been slightly modified for June 15th.  I am still bullish (more so than before), but if we do break below this minor breakout support level, I will quickly turn bearish for the short term.  

Today’s price action completely wiped out yesterday’s losses.  Since DIA and SPY broke through support yesterday but bounced back today, I think we have a potential bear trap.  Any more upside will result in a lot of shorts panic covering.  I think we might first move sideways or down a bit, then reverse higher next week.  


DIA analysis 5_30_2018.PNG

The rectangle shows the consolidation zone, with DIA breaking down below support.  However, notice that price has snapped back into that rectangle.  I predict we break upwards of the rectangle, but it would be advised to sell if it breaks below the bottom of that rectangle again.  


SPY analysis 5_30_2018.PNG

The SPY chart looks like the DIA chart, so I’m also expecting an upwards break of the rectangle.  Again, another break below 270 is bearish so that might be a good time to sell. 


QQQ 5_30_2018.PNG

QQQ is still the strongest of the three major indexes.  It is currently running into overhead resistance near 170.  


IWM 5_30_2018.PNG

IWM is the strongest index by far, and has made a new all time high today.  I would consider buying in the 158-160 support zone (breakout location) highlighted above.


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