CHARTS
SOX: Modest gain but nonetheless continuing the Wednesday gap to a new post-2000 high. The chips continue as one of the best leadership groups, rallying again after a bit of volatility during the late April/early March lateral move.
NASDAQ: NASDAQ gained modestly Friday, continuing the move up the 10 day EMA after its breakout to a new high in late April. NASDAQ has slowed its ascent, but the move remains as the same leadership stocks continue to show gains as noted at the first of the report. FAANG and friends still garnering the bids.
SP500: Lower Friday, still fading from the high set just a week before. SP500 gapped and rallied higher in late April, consolidated, rallied modestly higher, and is not consolidating again, holding near the 10 day EMA. Still in excellent position to make a new break higher. Still of course waiting for that to happen. Friday C looked better; perhaps it can lead a group of financials and thus help the SP500 make a breakout.
DJ30: Tight doji Friday at the 20 day EMA as the Dow tests back from its 2 week lateral consolidation. This perhaps is the shakeout that finally launches DJ30 higher out of its three month consolidation.
SP400: The midcaps struggled to close the week after looking so good Wednesday as they attempted a break higher. Once again that failed, and they are at the 50 day MA's. Possibly a double bottom at that level that is also at the 50% Fibonacci retracement of the April rally. Okay, the midcaps tried an inverted head and shoulders that didn't pan out. put in a double
bottom that broke higher, and now are testing that move with another double bottom.
RUTX: Same action as the midcaps, fading the hew high the past 2+ weeks, falling to the 50 day MA's and 50% Fibonacci retracement Friday. That makes for a small double bottom similar to SP400 and now we see if RUTX can make a new upside break.
Source: Investment House