May 22


Market Commentary for May 21, 2020


May 22, 2020

In the Range.

As expected, the market continued to move in a tight range today from 24,400 to 24,800.  I would expect a solid break to occur from it Friday or Monday, which should be imminently tradeable intra-day.  From there, we need to watch the major levels that are marked in the charts.

DJIA – 15 Minutes

The Daily Chart continues to show a solid consolidation with clear support and resistance boundaries.  Once we see a solid break of one of these levels, th emarket should follow through.

DJIA – Daily

Commentary:  Clearly the market wants to go up, but is hesitating.  Many stocks are way overbought.  AAPL, NFLIX to name a few.  When is the Day of Reckoning?  When the DJIA breaks 23,000 (down).  A solid break of 24,800 up will tell us the market is going higher – at least short term,  But a break of 24,400 will indicate short term weakness.  Then, we need to keep watching 23,000.  As long as that level holds, we should see more upside — in a market that wants to go up.

Ed Downs

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