Stock Market Commentary Week Ending Friday May 20th

The NASDAQ 100 closed lower due to profit taking on Friday as it consolidated some of this week's short covering rebound off Tuesday's low. The low range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI have turned bullish hinting that a short term low might be in or is near. Closes above the 20 day moving average crossing at 2381.00 are needed to confirm that a short term low has been posted. If June renews this month's decline, the 50% retracement level of the March-May rally crossing at 2307.25 is the next downside target. First resistance is the 20 day moving average crossing at 2381.00. Second resistance is this month's high crossing at 2428.00. First support is Tuesday's low crossing at 2318.25. Second support is the 50% retracement level of the March-May rally crossing at 2307.25.

The S&P 500 index closed lower on Friday ending a two day short covering bounce off Tuesday's low. The low range close sets the stage for a steady to lower opening on Monday. Stochastics and the RSI are turning bullish hinting that a low might be in or is near. Closes above the 20 day moving average crossing at 1341.97 are needed to confirm that a short term low has been posted. If June renews this month's decline, the uptrend line drawn off the 2010-2011 low crossing near 1309.35 is the next downside target. First resistance is the 20 day moving average crossing at 1341.97. Second resistance is this month's high crossing at 1361.00. First support is Tuesday's low crossing at 1316.20. Second support is the uptrend line drawn off the 2010-2011 low crossing near 1310.86.

The Dow closed lower on Friday ending the short covering rebound off Tuesday low. The mid range close sets the stage for a steady to higher opening on Monday. Stochastics and the RSI are turning bullish hinting that a short term low might be in or is near. Closes above the 20 day moving average crossing at 12,651 are needed to confirm that a short term low has been posted. If the Dow renews this month's decline, the 50% retracement level of the March-May rally crossing at 12,216 is the next downside target. First resistance is the 20 day moving average crossing at 12,651. Second resistance is the reaction high crossing at 12,781. First support is the 38% retracement level of the March-May rally crossing at 12,372. Second support is the 50% retracement level of the March-May rally crossing at 12,216.


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