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Jim Wyckoff

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U.S. Stock Index Bulls Are Fading

May 20, 2019 by Jim Wyckoff

The U.S. stock index futures hit contract and/or multi-month highs in early May but have since appeared to “roll over” as the bulls have lost power. The “sell in May and go away” trading adage appears to be holding true as we have passed the mid-point of May. See on the daily bar chart for the June e-mini S&P futures that prices have dropped from the recent high. Note at the bottom of the chart that the Moving Average Convergence Divergence (MACD) indicator is in a bearish posture as the blue trigger line is below the red MACD line and both are trending lower. A drop in price below the solid support line seen on the chart would give the U.S. stock index bears fresh power to suggest a new leg down in prices. Stay tuned!

Filed Under: Blog News, Jim's Morning Report, Uncategorized

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