Today’s Market Comments:

Interesting Day. Stocks fell hard mid-day, then reversed course and closed slightly below where they opened. Trannies were the exception, with a strong up day Thursday, May 24th. The major averages formed what could be a hammer candlestick pattern Thursday, which is often seen at bottoms. It is possible that the triangle patterns from January 2018 are finished, and the May rally is subwave 1-up of v-up, or one lesser degree rally leg, wave{1} up of 1-up of v-up. The price action the past few days could be corrective subwave 2-down (or one lesser degree {2} down, a small flat pattern). If so, next could be a strong wave 3-up (or {3}up) move. We still cannot rule out the possibility that subwave e-down for the large degree triangle from January 2018 is yet to occur, and is next. We show updated charts on pages 25 through 30 in tonight’s report. Our Blue Chip and Tech key trend-finder indicators remain on a Neutral signal Thursday, however the important Purchasing Power Indicator component of these indicators are on Buys. The small cap Russell 2000 PPI also remains on a Buy.

 

But the real news came from our HUI Mining stock key trend-finder indicators, which moved to a new Buy signal, as the HUI 30 day Stochastic generated a new Buy signal, joining the HUI Purchasing Power Indicator. It is possible this means metals and Miners have finished their triangles and are about to breakout sharply higher. Gold has an eventual upside price target of around 1,600 based upon the patterns we are tracking.              

 

 The U.S. Dollar may have completed its initial rising trend and may be about to correct lower. Oil is inside a large degree rising trend, but may need to correct its recent rally soon. U.S. Bonds are close to bottoming, and a rally back toward 150 could soon start.

Our Blue Chip key trend-finder indicators moved to a Sideways signal May 18th, 2018 and remain there Thursday, May 24th. The Purchasing Power Indicator component triggered a Buy signal Friday, May 4th. The 14-day Stochastic Indicator generated a Sell on May 18th, and the 30 Day Stochastic Indicator generated a Buy on May 7th, 2018. When these three indicators are in agreement, it is a short-term (1 week to 3 months’ time horizon) key trend-finder directional signal. When these three indicators are in conflict with one another, it is a Neutral (Sideways) key trend-finder indicator signal.

Our intermediate term Secondary Trend Indicator generated a Buy signal Wednesday, August 30th, and remains there Thursday, May 24th, dropping 3 points (out of a possible 9 points), to positive + 13, needing to drop below negative -5 threshold for a new Sell.

Demand Power fell 2 to 393 Wednesday while Supply Pressure was flat at 373, telling us Thursday’s move in Blue Chips was mild. This DP/SP Indicator moved to an Enter Long Signal Wednesday, May 2nd, and remains there Thursday, May 24th, 2018.

The Plunge Protection Team Indicator moved back to an “OFF” signal on March 21st, which means the PPT is not as likely to support the markets while this indicator remains on an “OFF.” This means there is not likely to be significant government intervention at this time, or if there is it will not be effective. This indicator is designed to identify high probability periods where the PPT will be supporting, or buying the stock market (when it is on an “On”  signal) and when it moves to a Neutral or Off signal (formerly called Sell), it does not mean the stock market will decline, it means the PPT’s interest in buying the market is off rather than on, and market forces outside the PPT are more likely to determine stock trends up or down. In other words, a Neutral or Off signal means the odds are higher that the PPT stands down or has little influence on price trends. 

Caution: I would not bet the farm on a Crash. Crashes are rare and maybe the pattern will morph into something we presently do not see that is less ominous. Risk must be managed. Maybe the Fed buys the entire stock market, who knows given their track record. Maybe a black swan event is postponed several months.

Gold, Silve r and Miners rose Thursday, May 24th, and may be ready to breakout above their Bullish triangles. They moved to a Buy signal Thursday, May 24th, as the HUI 30 Day Stochastic triggered a Buy signal May 24th, and our HUI Purchasing Power Indicator generated a Buy on March 26th. When these two indicators are in agreement, it is a directional signal, and when at odds with one another, it is a combination neutral signal. On May 24th, the HUI Demand Power / Supply Pressure Indicator moved to an Exit Short signal. On Thursday, May 24th, Demand Power rose 3 to 394 while Supply Pressure fell 4 to 392, telling us Thursday’s HUI rise was moderate.

DJIA PPI Fell 1 to + 56.78, on a Buy

DJIA 30 Day Stochastic Fast 70.00 Slow 64.67 On a Buy

DJIA 14 Day Stochastic Fast 53.33 Slow 72.78 On a Sell

DJIA % Above 30 Day Average 70.00

DJIA % Above 10 Day Average 50.00

DJIA % Above 5 Day Average 46.67

Secondary Trend Indicator Fell 3 to Positive + 13, On a Buy

Demand Power Fell 2 to 393, Supply Pressure Flat at 373 Buy

McClellan Oscillator fell to positive + 25.91

McClellan Osc Summation Index + 2474.95

Plunge Protection Team Indicator – 11.64, on an “OFF”  

DJIA 10 Day Advance/Decline Indicator + 129.2 on a Buy

NYSE New Highs 66 New Lows 48

Today’s Technology NDX Market Comments:

The NDX Short-term key Trend-finder Indicators generated aSideways signal Thursday, April 26th, 2018, and remain there May 24th, 2018. The NDX Purchasing Power Indicator generated a Buyon May 23rd, the NDX 14 Day Stochastic triggered a Buy signal on May 4th, 2018 and the 30 Day Stochastic triggered a Sell signal on April 24th. When all three component indicators are in agreement on signals, it is a consensus directional signal. When they differ, it is a sideways signal.

 

The NDX Demand Power / Supply Pressure Indicator moved to anEnter Long positions signal Monday, May 7th and remains there May 24th. On Thursday May 24th, Demand Power fell 3 to 419, while Supply Pressure fell 1 to 403, telling us Thursday’s decline was weak.

 

The NDX 10 Day Average Advance/Decline Line Indicator triggered a Buy signal May 7th, 2018, and needs to fall below negative – 5.0 for a new Sell. It fell to positive + 6.2 on Thursday, May 24th.

 

NDX PPI Flat at + 227.43 On a Buy

NDX 30 Day Stochastic Fast 57.00 Slow 56.00 On a Sell

NDX 14 Day Stochastic Fast 52.00 Slow 55.00 On a Buy

NDX 10 Day Advance/Decline Line Indicator + 3.2 On a Buy

NDX Demand Power Fell 3 to 419, Supply Pressure Fell 1 to 403 Buy

 

RUT PPI Flat at +186.23 on a Buy

RUT 10 Day Advance/Decline Line Indicator + 194.6 On a Buy

 

Today’s Mining Stocks and Precious Metals Market Comments:

 

Our HUI key trend-finder indicators moved to a Buy signal May 24th, 2018.

HUI PPI Rose 2 to 185.30, on a Buy

HUI 30 Day Stochastic Fast 65.00, Slow 41.11 on a Buy

HUI Demand Power Up 3 to 394; Supply Pressure Fell 4 to 392, Neutral