Weekly Summary: While the NASDAQ index continues to be mired in underperformance, the DIA (DOW) and the SPY (SP 500) resumed their inexorable treck northwards on the last two trading days of the week.
Although the NASDAQ has recently underperformed – mostly due to losses across the FANGT stocks – many breakouts were identified through the alert system on this site.
Tech stocks AMAT and ASML shot out of bases on almost double average volume perhaps indicating more of the same next week.
Homebuilders PHM, DHI, and others were not far behind.
Home improvement hardware stores HD and LOW also had timely alerts with base breakouts.
Because of the dichotomy between tech stocks and the rest of the market I’ll switch gears this week.
For this week let’s take a look at the weekly chart of the Wilshire 5000, one of the broadest stock indexes available which will tend to wash out the performance differences noted above.
Check the following chart:
The trendline has been consistently up since the end of the COVID related meltdown in early 2000.
It appears that prices are readying for another move upwards from the trendline with a reasonable hammer candlestick resting on the trendline.
The most recent high price of the W5000 is a shade less than 42300.
A move above that price would confirm another move up, especially if a MACD bullish signal occurs at approximately the same time.
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