May 5


Market Commentary for May 5, 2020


May 5, 2020

Could this be “it”?

The two charts below on the DJIA – 15 Minutes and Daily.  If we look at the real time chart, we see an interesting bounce off Support at 23,400 and a strong Trend Line Break.  This is a bullish sign.

The Daily Chart shows something even more interesting.  Over the last 3 months, the index has formed a solid expanding triangle, with a base at 23,000 and a consolidation target of 29,000.

So, is the market preparing for a monstrous upside move?  Could be.  But we don’t have to predict.  The stance today is “Bullish” but a break of 23,000 will change this.  Conversely, a move through the top of the triangle at about 25,000 would almost surely mean the upside target will be reached.

So current posture “Long” with a reset on a close below 23,000.  That’s fairly close to the current level of 23,800 so risk is fairly low.

This market appears to be pricing in a recovery and you can’t argue with it – yet.


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