The Dow and S&P 500 index performed well last week. The daily charts for DIA and SPY, the ETF index proxies, show price exceeding the highs from May which exceeded the highs from April. The lows also continue to be higher and daily range grows smaller as does volatility. All good.
Next resistance is 280.41 for SPY and 254.72 for DIA. Don’t be surprised by a pullback at these levels as stair stepping higher is much healthier than straight up.
Continue to hold.
SPDR Dow Jones Industrial Average ETF (DIA) daily
SPDR’s S&P 500 Trust Series ETF (SPY) daily
A quick note on last weeks recommendation…
XRT, the retail sector ETF, popped 6% from my recommendation last Monday morning. Price exceeded the February high and the next level to watch is 51.25. Continue to hold and go shopping.
SPDR S&P Retail ETF (XRT) daily
Bonds have been bid up over the past few weeks. The 115 level in TLT is still extremely important support. The weekly chart highlights the range between 115 and 130 (red horizontal lines). Except for a couple of violations price has lived in this range since 2011 and price can continue to live in this range for another 7 years…just keep an eye on 115. Violating 115 would not be good for equities.
iShares Barclays 20+ Year Treasury Bond Fund (TLT) daily
Remember, if you have any questions or want specific equity or ETF price analysis just send me an email.
Hold all open recommendations.
Have a great week.
Trade Smart,
Don