MomentumOptionsTrading.com Morning Update for 5/19/14
Mixed Week Reveals Bullish and Bearish Signs
The market started the week with a run at fresh all-time highs that helped lift Tech and small-caps off the mat.
I mentioned the day after Mother’s Day is usually very bullish with a 75%-80% chance of an up day but much of the credit goes to a fairly non-violent weekend between Ukraine and Russia after the voting polls were opened.
Terrific Tuesday was mixed as the bulls pushed their win streak to 5-straight on the Dow but Tech and the small-caps struggled and offered signs a top might be in.
Wednesday’s pullback heightened those suspicions and Thursday’s plunge back below prior support levels looked convincing by the bears. However, the bulls won Friday’s action as the indexes finished off their lows for week with the major averages holding in a continued trading range. (continued…)