Friday, May 26, 9:07 pm EST. The week ended on a high note. The metals did well… better than the miners. You’d expect all would have been up, but that was not the case.
So, by way of review for an average of all 16 symbols, as 1 chart: We have a December bottom. We rallied to 2/8. We settled back to 3/8 thru 15. That Wednesday, the 15th, we launched, but there was never any good volume or follow-through… no confirmation. We peaked at a lower high on 4/13, and commenced to fall back unto 5/4. It ‘rallied’ again, but without conviction, to another still lower high on 5/17. This is creating a Bullish Wedge formation, as the March and May lows are on a horizontal plane, as the 2/8, 4/13 and 5/17 tops are forming a lower highs wedge pattern. Since 5/17, prices settled back just a bit, to what I identified as a near-term support level, and it held. The wedge is closing and the top of it is now near-term resistance, which the price has been rising up to meet these past few days.
I’ll update the timer with the past couple of days’ data to get a feel for what risk might be involved.
Since volume was pitiful just before the long holiday weekend, being down by 41%, my guess is that we may well need to trade sideways, between the support/resistance, as it tightens up… risk will be being wrung out, and then, the possibility of breakout to the upside strikes me as the more likely outcome, and would fulfill the ‘prediction’ of the bullish wedge formation. That’s my story, and I’m stickin’ to it… for now!