Thursday, May 24, 2018
Lower today as the geo-political news took center stage early on. The Dow fell 75 points on light volume. The advance/declines were just about even. The summation index is still moving up. The overall market fared better than the Dow. The small stocks are still relative good performers here. The TRAN was up and looks ready to crack its near term resistance. The market remains short term overbought but I get the feeling that we are about to move higher. I'm going to let tomorrow get out of the way and then decide what to do next week. GE bounced back 3/8 on heavy volume. Gold rose $15 on the futures as the US dollar was slightly lower. The ten year rate has dropped in the past couple of sessions as well. This seems to be supportive of gold as we moved back above the $1300 level. The XAU added 1 1/4, while GDX gained 1/3. Volume was good. Perhaps we are about to see a move higher for gold but with another increase in rates coming next month I'm not sure what to make of it. Mentally I'm feeling OK. A long weekend on tap in a day so I would expect tomorrow to be a light volume affair as players head out the door early. Today began as if the market had every reason to sell off but it came back throughout the session. That's a bullish sign in my view. I don't see any reason to be negative on the market at this point. With RUT leading the way higher, the trend for now is up. We'll get through tomorrows trading day and then take a break. Europe and Asia were lower last night. We'll close out the week tomorrow.
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