Taking Stock - Week of May 3, 2021

Monday, May 3, 2021

Green Arrow Up 

DJI30 Index at the close ---  34,113.23 +238.38 (+0.70%)

The Index opened at 33905, up 30, and immediately shot up to 34074, up 199. It continued up, reaching a hi of 34216 at 10:00. It stayed above 34130 until 3:48, and hit a new hi of 34221 at 11:45. In the last few minutes it slid 17 points into the close.

This is a clearly up day, with the hi and lo higher by 232, and 119 points, respectively. This action missed new all-time intra-day and closing highs by 36 and and 24 points respectively.

Every index followed a different path today, with the DJI leading the pack and only the NASDAQ finishing negative. The Russell stayed below last weeks local hi, and might still be forming a head and shoulders pattern.

% changes -

DJI30 +0.70

SP500 +0.27
NASDAQ -0.48

Russell +0.45

DJI Closings -

5/03/19 - 26505
5/04/20 - 23750
4/01/21 - 33153
5/03/21 - 34113

NYSE Internals -

A/D = 2311/1090 = 2.12
A/D Vol = 2.19
New Hi/Lo = 374/18 = 20.78

Tuesday, May 4, 2021

Yellow Arrow Sideways.

DJI30 Index at the close   ---   34,133.03   +19.80 (+0.06%)

The Index opened at 34080, off 33 points, and immediately fell to 34038.   It kept dropping, hitting a lo of

33830 at 10:00.  It went sideways until 11:15, when it dropped to 33766, the day's lo, off 348.  This is in the support range indicated by the violet lines on the chart.  From there it rose, reaching 33940, off 173, shortly after noon, and 34000 shortly after 1:00.  It then moved sideways between 34000 and 34060 until after 3:30 when it rose into the narrowly positive close.

The rise to plus 20 at the end of the session kept this from being a clearly down day.  The hi and lo were lower by 73 and 139 points, respectively.  The span was 382 points.

The other indexes also rose from their late morning lows, but none came close to positive territory.  The SP500 also fell into it's support zone, then closed just above it.  The NASDAQ only rose slightly from it's lo. The loss in the Russell is consistent with the potential head and shoulders pattern I've been wondering about.

The market fragmentation continues. The DJI and SP500 still hover near their recent all time highs, and could be setting up for more gains.  The same might be true of the NASDAQ, though today's loss is close to 2%.  It's now 3.57% below last week's hi, with a downward trajectory.  The  Russell does not look healthy.

% changes -

DJI30 -0.67

SP500 +0.06

NASDAQ -1.88

Russell -1.28

DJI Closings -

5/03/19 - 26505

5/01/20 - 23724

4/01/21 - 33153

5/03/21 - 34133

NYSE Internals -

A/D = 1441/1906 = 0.76

A/D Vol = 0.64

New Hi/Lo = 287/28 = 10.25

Wednesday, May 5, 2021

Green Arrow Up

DJI30 Index at the close   ---   34,230.34   +97.31 (+0.29%)

The index opened at 34163, up 31 points, and dropped to the day's lo of 34040, off 93, before 10:30.  It climbed above 34290, a new intra-day, before noon, sagged to 34220 after 1:00, then rose to 34331, up 198, and another all time intra-day hi before 3:00.  It slumped to 34200 after 3:30, then slid sideways into the close, a 101 point drop from the hi.

This is a clearly up day, with the hi and lo higher by 183 and 274 points, respectively.  The intra-day all time hi is higher by 74 points, and the new closing hi is by 93.  The span was 292.  All this gives me a mixed message.  The new highs and higher lo are positives, but the drop at the end is not comforting.  Nor are the actions on the other indexes.  The SP500 stayed in the green most of the day, but did not approach new highs, and slid all afternoon, closing only slightly positive.  It sits at the top of its support zone.  The NASDAQ slumped from its mid-morning hi, and slid the rest of the day, ending negative for the 4th consecutive day.  The Russell 2000 coiled around neutral, and also landed negative at the close.

Fragmentation continues.  This market does not seem healthy.

% changes -

DJI30 +0.29

SP500 +0.07

NASDAQ -0.37

Russell -0.31

DJI Closings -

5/03/19 - 26505

5/05/20 - 23883

4/05/21 - 33527

5/05/21 – 34230

NYSE Internals -

A/D = 1763/1568 = 1.12

A/D Vol = 1.59

New Hi/Lo = 411/20 = 20.55

Thursday, May 6, 2021

Green Arrow Up

DJI30 Index at the close   ---   34,548.53   +318.19 (+0.93%)

The Index opened at 34245, up 15 points, and quickly reached a hi of 34341, up 111.  It then fell to 34203, off 28, at 10:00, and slid to 34185 a few minutes later.  But just after 10:30 it rose to 34300. Itslid about 50 pints in the next half hour, then rose to a new hi of 34448 before noon.  I slid again, landing near 34320 from 2:10 to 2:45.  After 3:00 it went parabolic, rising almost 200 points into the close.  The SP500 had a similar contour, and the other indexes also had late-session increases to recover from losses earlier in the day.

This is a clearly up day, with new intra-day and closing highs at 34561 and 34549, blowing out yesterday's highs by 230 intra-day and an amazing 318 points at the close. 

The SP500 was green most of the session, and had an outside day.  The NASDAQ touched green midday and at the close.  But it's hi and lo were both lower, and it has formed a broad double top. The Russell 2000 was in the red all day, with a lower hi and lo, and wound up flat. But the head and shoulders pattern is still developing.

The employment report comes out tomorrow.  We'll see if that makes any kind of difference.

% changes -

DJI30 +0.93

SP500 +0.82

NASDAQ +0.37

Russell +0.00

DJI Closings -

5/06/19 - 26438

5/06/20 - 23665

4/06/21 - 33430

5/06/21 – 34548

NYSE Internals -

A/D = 1822/1483 = 1.23

A/D Vol = 1.74

New Hi/Lo = 390/37 = 10.54

Friday, May 7, 2021

Green Arrow Up

DJI30 Index at the close   ---   34777.76   +229.23 (+0.66%)

The Index opened at 34578, up 30 points, and immediately dropped to 34464, off 84.  There was a sharp rebound to 34726 at 10:15, then mainly sideways motion until 2:00.  By 2:30 it reached 34775, then 34811 after 3:30, followed by a 34 point slide into the close.

This is a clearly up day, with the hi and lo up by 250 and 279 points, respectively.  The span was 347. Once again this gives us new all time intra-day and closing highs, by 250 and 229 points, respectively. 

The other indexes were also up, though the contours were all a bit different.  And they all gained more on a percentage basis than the DJI.  The SP500 also reached new all-time intra-day and closing highs. The NASDAQ  

reversed a week-long downward trend with a clearly up day, finishing 387 points under its 4/26 hi.  It may still be forming a double top with the late February hi. It was also a clearly up day for the Russell 2000.  The right shoulder of the prospective head and shoulders pattern is now so broad on the right side that it may soon be invalidated.  

% changes -

DJI30 +0.66

SP500 +0.74

NASDAQ +0.88

Russell +1.35

DJI Closings -

5/06/19 - 25965

5/06/20 - 23876

4/07/21 - 33446

5/07/21 – 34778

NYSE Internals -

A/D = 1288/842 = 2.95

A/D Vol = 3.72

New Hi/Lo = 552/23 = 24.00