5/10/2023W UPTREND Day 30 under PRESSURE Market looks up as Nasdaq has Major Accumulation Day!

May 10, 2023

5/10/2023W UPTREND Day 30 under PRESSURE  Market looks up as Nasdaq has Major Accumulation Day!

THE MARKET’S MESSAGE   The Nasdaq’s modest rise on Wednesday hints that a strong Uptrend could be forming.

Volume popped almost 20% higher for the Nasdaq on Wednesday and 6.5% higher for the S&P500 giving both indexes accumulation days – days with more buying than selling.

Sadly, the DJIA continues to drag its feet with a -0.1% price drop on Wednesday. (I have not included a picture of the DJIA – why bother? And they are easy to find on your broker’s site. Frankly, spending time analyzing the DJIA feels like a waste of both our times. Let’s stay focused on the “movers and shakers out there!)

I am hoping we will get more guidance from the Federal Reserve through the series of talks being given by Fed high officials who are scheduled to talk to large audiences this week.

What did the market moves on Wednesday tell us?

>>> The major indexes (Nasdaq and S&P500) seem to have taken on the January highs as resistance, refusing to rise above them.  But WAIT! The Nasdaq did punch through its 2023 high today closing just above it as well. The Nasdaq volume which had dropped to 18% below average on Tuesday, popped back to average on Wednesday.  I am breathing easier now that the Nasdaq seems to have awakened.

Reviewing the MARKET ACTION (Nasdaq) OVER THE LAST 20 DAYS table below, I start with the “Type of Day” column to see if there is serious buying (accumulation days) or serious selling (distribution days.)

In the oldest13 trading days, the Nasdaq had:

·      4 accumulation (buying) days and

·      No distribution(selling ) days.

 

Market strength can be seen in the most recent 7 trading days:

·       3 days were“consistent with” an uptrend with only 3 older days (4, 6, and 7) were consistent with a  Downtrend day .

·       My concern is that: In the last 7 trading days:

o   3 days were consistent with a Downtrend  (seethe rightmost column)

o   3 days were consistent with an Uptrend

Here is my favorite note on the MARKET ACTION table:

·      I’m pleased that 3 of the last 4 days high had new highs! (Note their prices highlighted in green.) Although 3 new high days is encouraging, it is not enough to change the market direction diagnosis to UPTREND.

 

 Reviewing the MARKET FACTORS, COUNTS & RATINGS table below, note there is GOOD NEWS:

·       The RISING/FALLING RATIO OF LEADER STOCKS has slowly risen slightly above to 1.3, slightly above neutral (which would be 1.0)..

·       The Nasdaq Accumulation rating is a solid B+ (sorry about that C- for the S&P500 and  D- for the DJIA indicating they have more sellers than buyers.).

·       If you hold some of those lagging indexes (S&P500, DJIA, and others), I hope it’s not too much. I don't hold them and suggest you rethink that strategy if you do. Some of the “old safe indexes” are now losing money or making a lot less than they have in the past.

 

The ACCUMULATION/DISTRIBUTION TABLE

The As and Bs have been almost FLAT over the last 5 weeks with a high of 47% and a low of 39%.  It sounds like the market makers are uncertain what to do with this market.  That means I will wait cautiously and watch what they do. Perhaps the talks by the 4 Federal Reserve executives this week will encourage new buyers.

 

>>>>> Are you registered on the current www.ArmchairInvestor.com site? You do not have to register to get the newsletter.BUT…..

If you are registered, you will receive a BRIEF email from me after I post this newsletter each night to tell you, as soon as possible, when it is available for your review. If you don’t get that message, just click www.ArmchairInvestor.com website to get the list of all recent Armchair Investor newsletters.

 

>>>>>I appreciate any feedback you have for me. Please send comments and ideas to:

Editor2023@armchairinvestor.com

 

Wishing you, “Many Happy Returns.”

CharlotteHudgin, The Armchair Investor,  

www.ArmchairInvestor.com   (214)995-6702   editor2023@armchairinvestor.com  

2023 ACI NEWSLETTER sent via WEBFLOW

 

 

 

More Recent Posts

Charlotte Hudgin
Editor, Armchair Investor
ArmchairInvestor.com
© 2022 Armchair Investor. All rights reserved.