The market passed 2 important tests this week as it continues to race to all-time highs. The Fed announcement and the health care vote in the House provided a potential slippery surface for investors, but the major indexes prevailed. As investors eye the prize of record new highs, all that stands in their way of crossing that finish line is the election in France tomorrow. When taking a look at the charts of the major indexes, one sees a current market pattern that resembles a three-year-old Thoroughbred that’s itching to blast out in the last few seconds before the gates fly open. If the market bolts up on Monday, expect a hard charge. If it false starts and bucks, the cushion to the downside is small and could cause a failure to obtain new highs and bring a change in our market outlook.
Monday, and the entire month of May, will be an important event for growth investors. Many challenges lie ahead and certain investments thesis’s will be pushed to their limits. During this time it will be critical for investors to focus intently on the major indexes price & volume readings in order to determine if their portfolio holdings are positioned properly to win or pull up lame.
Our signal remains “green” for the time being. Have a Triumphant day!