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.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s