Posted by 4 May 2005

Downtrends Broken

I said yesterday that my outlook would change if the indices were able to close above their downward sloping trendlines and that’s exactly what happened today on the Dow and S&P 500. The Dow also climbed back above its 200-day moving average. The Nasdaq also had a good day but it still hasn’t broken its downtrend. So things are looking more bullish to me. I think the true test will be how the market responds to Friday’s jobs report…

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Comments

  1. Posted by Douglas on May 4, 2005 at 9:45 pm

    Mike,

    What is the importance of OBV at almost two month highs? as noted in your graph.

    Keep writin’ – we’re readin’!!

  2. Posted by TheArchitect on May 4, 2005 at 11:46 pm

    It looks like the market is anticipating a strong jobs report. What the market anticipates it usually gets (information gets around). I suspect a strong rally after the release of a positive jobs report.

    If the numbers are bad I feel the market will shrug it off as old data. This market is definately getting primed for a good rally. A good jobs report will just accelerate it.

  3. Posted by Michael on May 4, 2005 at 11:52 pm

    Douglas,

    OBV can act as a leading indicator, so price may follow it higher

  4. Posted by Aston on May 5, 2005 at 5:23 pm

    Is the COMPQ done with its downtrend? Looks like we might see a stall here, don’t you think? Indecisive perhaps bearish candle pattern today (5/5, overbought Stoch. Those job reports tommorrow better be great or…? For sure Mike keep bloggin, this is great stuff.

  5. Posted by Michael on May 5, 2005 at 5:39 pm

    It’s still sitting right on the line. No doubt the jobs report will be the deciding factor.