Sam’s Summary w/e May 6 2023

SPX: A slightly bearish week for the SP500 which could have looked a lot worse without god old NFP producing better than expected results, which created a BuRPI candlestick on the daily chart for price action. The weekly price action was a hammer candlestick with a nice tail to it. Price came down on Thursday to test the 26th April levels and just above its D50ma level. We need to see a BO for more confidence. The SP500 is still trading above all of the major averages for the sixth week in a row.

NASDAQ: A slightly better looking weekly hammer candlestick for the Nasdaq compared to the SP500’s. Nasdaq is looking ore likely of a break out of the Jan pivot high which would be nice to see for us bulls. As Javid mentioned on the webinar, price didn’t come down to test the 25th April low and therefore made a higher low which is again a good sign for us bulls (and for the BO hopefully). The Nasdaq is now trading above all of the major averages for the seventh week in a row.

RUSSELL (SMALL CAPS): Small caps produced a weekly indecision candlestick, which as per the other indices it was thanks to Fridays price action that we had a nice looking tail on the weekly candle rather than a BrRPI candle. Price on the daily now needs to go on and break above its D50ma level to provide us with any confidence of a bullish move up. Small caps is still lagging behind for now. Small caps are still trading below all of the major averages for the eighth week in a row now.

DOW: The Dow also produced a hammer candlestick on the weekly chart, however had more of a bearish look to it as a slightly more negative week as compared to the other indices. On Thursday price action came down and undercut the 26th April pullback level and tagged the D50ma before NFP Friday saved the day an move price action back up with a BuRPI candlestick. The Dow is trading above all major averages for the fifth week in a row now.

FTSE 100: The FTSE 100 also produce a hammer candlestick on the weekly chart and it was again thanks to Fridays price action. On the daily chart price came down and undercut its D50ma level before a very strong BuRPI candle on Friday came in to take price back convincingly above it. We are looking for price to go on and break the 21 April high and also RN 8k to provide us with more confidence of a continued bullish move upwards.

Sam Holden

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