Market Direction and Stock Trends

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»» The US Share Market into May ««
By: Marty Armstrong | May 3, 2021

April still closed strong making it 13 months up from the 2020 low. But the market is running out of steam and it is at a vital crossroads. It reached 34256.75 on the 16th but it has held all our critical daily support so far. This first week of May still appears to be the target and a change in trend becomes possible next week. Even just looking at a standard RSI, the major high on the weekly level was 92 back during the week of January 13, 2020. Currently, the RSI stands at 70, which indicates that once again we are not at a major all-time high. That does not rule out a correction from a May high into the summer. 

We have reached our first target for a temporary high which was 35,000-37,000. The reason I say we are at a major crossroads is that either the market breaks or it must blast through this resistance and pull off a cycle inversion to run to test the 40,000 rather fast.

So pay attention this week. A new high above 34256.75 will signal that May should produce a temporary high. The failure to exceed that level, opening the door to a knee-jerk reaction.

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