DAY HAGAN TECH TALK JUNE 5, 2018
- Within the context of a primary uptrend, while major Large Cap indices (SPX, DJIA, NYSE) remain range-bound and will likely stay so for the near term (chart below), Advance-Decline Lines—along with Micro, Small and Mid-Cap indices plus the Value Line Index and many Technology-related areas—are at three-month highs (above their March 2018 peak) or new Bull market highs--chart below.
- Tactically, initial resistance for the S&P 500 is 2752, followed by what I presently feel is the upper end of the current trading range (2800 to 2822). 2675 to 2655 is a pocket of near-term support, followed by a rising 200-DMA support line.
- First Trust U.S. IPO Index Fund (FPX): When I chart the relative strength trend of FPX versus the S&P 500, I see a lateral, sideways trend that has been in place for the past few months. I mention this because a hot IPO market is indicative of excessive enthusiasm for the stock market. Therefore, I’m comforted that the IPO market isn’t going straight up—chart below.
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Art Huprich, CMT
Chief Market Technician
Day Hagan Asset Management
—Written on 06.04.2018. Chart sources: Stockcharts.com.
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