Last week, the market began elevated by a forklift.
Monday’s Daily stated, “In the market, Technology and the FANG stocks did all the heavy lifting.”
Tuesday, the market looked like a Roadrunner, born to run. The Daily stated, “At 7 years old, the bull market might have only one more run that outpaces humans.”
Wednesday, we wondered how much hot air the market had left. The Daily made a bold prediction.
“The Russell 2000 takes out the top of the channel on the monthly chart at 141.50 area. Maybe it flies as high as 143 level. But then, should the price of IWM return below 140 either at the end of April or sometime in May, I’d make sure the passengers (traders) have on their flame-retardant clothing.”
Thursday, like the “Miracle Stair” in the Loretto Chapel, the market appeared to have “two 360 degree turns and no visible means of support.”
By Friday, traffic grid-lock during rush hour occurred after Amazon and Google soared on their earnings reports.
However, also on Friday, Wednesday’s prediction came to fruition. The Russell 2000 ended the month below 140. Earlier in the week, it pierced above the monthly channel resistance then closed beneath it.
The administration completes its first 100 days. The fire rooster continues to flamboyantly cock-a-doodle-doo.
Yet, considering how several Modern Family sectors stressed out, should a comfortable rooster crow behind bars?
The IWM monthly chart shows the channel top and bottom in cyan. Last Wednesday, IWM poked its head above the channel line when it made a high of 141.82.
In February, the high tick was 140.32. In March, it was 140.86. Giving it some leeway, a closing price for April under 140 offers a head’s up.
Furthermore, Retail closed weak as it failed to take out the 50-week moving average, 200-day moving average and 23-month moving average.
Transportation and Regional Banks both closed in warning phases.
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