Saturday, May 16, 2015

May 18, 2015 weekly outlook

The past week SP500 had closing highs Thursday and Friday.  DJIA set ATHs on Thursday (but not closing highs).  The Naz failed to break its old 15 year high.  We said - don't be surprised if we saw ATHs during the week.  Expected the highs a day or so earlier than Thursday.....  Still not a bad call for the week.

This week we start the week off with the Wall cycle turning down for the week.  May take a week or more to develop downside momentum into late May and June.   The 3 shorter cycles start the week moving up.  The shorter cycle tops mid week and turns down.  Based on the position of the cycles expect a top by mid week and sideways to down last part of the week.  

By the end of May we may be into a real correction (sell in May and go away?)  We'll see how the cycles align by then....

GL traders
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2 comments:

  1. InletMay 18, 2015 at 1:09 PM

    shorter cycles up and pushed market higher as expected Monday. New highs SP500 and DJIA. Dow Transports and Utilities (diverging) may be setting up a DOW sell signal?

    ReplyDelete
  2. InletMay 20, 2015 at 8:24 AM

    Even though new records set, not much of a breakout. Has the feel of a top forming.

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