It was a bearish week for US equity indexes, with net weekly declines ranging from -2.4% (R2K), -1.3% (Nasdaq comp'), -1.0% (NYSE comp', Transports), -0.8% (SPX), to -0.7% (Dow).
Lets take our regular look at six of the main US indexes
The SPX saw a second consecutive net weekly decline, settling -21pts (0.8%) to 2869. MACD (blue bar histogram) cycle ticked lower for a third week. At the current rate, a bearish macd cross will be seen in the week commencing Tue' May 28th. The last such cross (Oct'2018) didn't work out so well for the bulls.
First major support is the 200dma of 2776. The equity bears need a bearish monthly settlement to have any real confidence. Right now, (under my criteria), that will require May to settle <2790s. Its clearly not that far down, and technically... the daily/weekly setup favours it
The Nasdaq cooled for a second week, settling -100pts (1.3%) to 7816. Note the weekly RSI of 55s. Bears need to see a break under <50 to have confidence of 'interesting things' in June/July.
The mighty Dow was the most resilient index this week, settling -178pts (0.7%) to 25764. A bearish macd cross will be due at next week's open, and that is to be seen as a problem for the m/t equity bulls. First support 25200/000 zone, with secondary of 24500/400s.
The master index settled -130pts (1.0%) to 12657. Due a bearish macd cross within 1-2 weeks, which is a problem for the m/t equity bulls. The more cautious bulls would wait to chase above the Sept'2018 high of 13261. Gundlach is watching this index more than anyone.
The second market leader lead the way lower this week, settling -37pts (2.4%) to 1535. Due a bearish macd cross within 1-2 weeks.
The 'old leader' - Transports, cooled for the third week of four, settling -110pts (1.0%) to 10491. Due a bearish macd cross within 1-2 weeks. Big support psy'10k, with secondary of the 9800s.
All six of the main US equity indexes were net lower for the week.
The R2K is leading the way lower, with the Dow somewhat resilient.
Weekly price momentum is swinging back toward the equity bears. The technical setup for the remaining nine trading days of May is pretty bearish.
YTD price performance:
The Nasdaq comp' remains the market leader, currently net higher for 2019 by 17.8%. The Transports are +14.4%, the SPX +14.1%, and the R2K +13.9%. The NYSE comp' is +11.3%, with the Dow trailing, but still higher by a respectable 10.4%.
T - HD, JCP, URBN, KSS, JWN, TOLL
W - TGT, LOW, LB, ADI
T - BBY, AMTD, HPQ, SINA
F - FL
T - Existing home sales
W - EIA Pet' report, FOMC mins' (2pm)
T - Weekly jobs, new home sales
F - Durable goods orders.
*As Monday May 27th is CLOSED for Memorial day, price action on the preceding Friday May 24th, can be expected to be very subdued.
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Have a good weekend
*the next post on this page will likely appear 5pm EDT on Monday.