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Market Recap for May 19, 2015

As with the other US stock indexes, QQQ has potential bullish divergences in place which are worth monitoring, should prices move higher into next week. Today the Q's dipped below the recent trading range but found support at the May 6th reaction lows. (edit: the previous posted 60-minute charts for QQQ & SPY were the same charts posted earlier today. The updated charts, as of today's close, have been added below)

QQQ 60-minute 2 May 19th

QQQ 60-minute May 19th

SPY broke below the 204.00 support level today & closed essentially on it. As with QQQ, IWM, etc. the SPY 60 minute trend indicators are bearish but there are potential bullish divergences worth monitoring.

SPY 60-minute 2 May 19th

SPY 60-minute May 19th

IWM bounced off the top of my 108ish support zone today while still holding onto the potential bullish divergences that remain on the 60-minute time frame. Barring a possible OpEx rally tomorrow, my expectation remains that the current downtrend in IWM will continue in the coming days/weeks, ultimately burning through these divergences.

IWM 60-minute 2 May 19th

IWM 60-minute May 19th

XLE clearly broke down below the primary uptrend line off the Jan lows & closed on just below it. This helps to reaffirm the near-term bearish case for the energy sector although the real selling might have to wait until next week as they might hold the market up into OpEx at the end of trading on Friday.

XLE daily May 19th

XLE daily May 19th

GLD followed through to yesterday's impulsive breakdown, confirming the near-term bearish outlook.

GLD daily May 19th

GLD daily May 19th

The longer GDX continues to ignore the weakness in GLD, the more violent the mean reversion will be. Despite a green close today, this chart still looks clearly bearish.

GDX daily May 19th

GDX daily May 19th

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May 19, 2016 8:08pm|Categories: Equity Market Analysis, Gold & Commodities|Tags: , , , , , , , , , |4 Comments

4 Comments

  1. lee1 May 19, 2016 8:12 pm at 8:12 pm

    Good call on the market correction so far. Still holding my breath for all time highs. Wondering if we go below the 200 MA and then rally big. Will see…

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  2. GetItRiight May 19, 2016 8:26 pm at 8:26 pm

    Randy, did you mean to attach the QQQ ans SPY charts as of end of day? These are from 11AM.

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    • rsotc May 19, 2016 9:33 pm at 9:33 pm

      Yes! Thanks for pointing that out. I had mistakenly uploaded the same 60-minute charts for SPY & QQQ that I has posted earlier today. The correct end-of-day charts have been updated in this post.

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  3. Art May 19, 2016 9:32 pm at 9:32 pm

    Thanks for the analysis Randy, nice job!

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